The expert predicted the decline of oil production by OPEC countries+ in 2019

© AFP 2018 / Haider Mohammed Oil and gas field in Basra, Iraq. Archival photoThe expert predicted the decline of oil production by OPEC countries+ in 2019© AFP 2018 / Haider Mohammed

OPEC+ will have, at least, to limit oil production in 2019, if the Alliance set a goal to keep the cost of Brent crude oil at above 70 dollars per barrel, said RIA Novosti Deputy Director of the corporate ratings group ACRA Basil Tanurkov.

Earlier Wednesday, Bloomberg, citing unnamed OPEC delegates, said that the OPEC at the meeting of the Ministerial monitoring Committee on 11 November in Abu Dhabi will discuss the options of actions of the Alliance for 2019, one of which is the possibility of reducing oil production.

«In fact, high prices at the moment are supported mainly due to the risk of supply reduction due to sanctions against Iran, as well as production cuts in Venezuela. While oil production in the U.S. is growing at a record pace, with the beginning of the year added more than 1 million barrels per day. In addition, countries that joined the agreement OPEC+, is also increasing production from July,» said Tanurcov.

«At current prices, some US can at the expense of production growth to cover the entire growth in oil demand in the world in 2019. Thus, if OPEC+ put aim hold oil prices above $ 70 per barrel of Brent, (them — ed.) will almost inevitably have to extend the agreement, if not reduce, at least – on the restriction of production», — concluded the expert.

OPEC and several non-organisation countries (OPEC+) agreed in late 2016 in Vienna on the reduction of oil production to 1.8 million barrels per day from the level of October 2016, of which 300 thousand were in Russia. The contract started from the beginning of 2017 and has been extended until the end of 2018. In June 2018 OPEC+ agreed goal is to escape from the fulfillment of the terms of the agreement, which then accounted for 47%.

In September the Minister of energy of Saudi Arabia Khalid al-falih, said that OPEC+ expects excess supply in global oil market in 2019 and allows for the possibility of a return to production cuts. And last week, on October 31, he stated that OPEC+ hopes in December to sign an agreement on permanent cooperation, then the country will be able to establish new indicators of oil production by 2019.