Variations in OPEC on increasing production

Media IN 21-06-2018
According to informed sources, there has been a clear divergence in the attitudes of OPEC participants on the need to increase oil production. Some member states believe that current production should be maintained according to the 2017 agreement. Saudi Arabia and non-OPEC member Russia see increasing production in response to growing growth. Demand for oil.
This comes ahead of the meeting tomorrow between producers from within and outside the Organization “OPEC” to discuss the future of increasing production under the two situations exposed.
The sources said that Iran and OPEC may keep the same agreement with the return of the commitment to 100%
Mohamed Barkindo, secretary-general of OPEC, said he was confident an agreement could be reached tomorrow.
Russia also proposed an increase in production from OPEC and non-OPEC producers by 1.5 million barrels per day, effectively ending the current production cuts of 1.8 million bpd that have contributed to rebalancing the market over the past 18 months And raised oil prices to $ 75 a barrel, after the price of oil fell to $ 27 a barrel in 2016.
Iran, Venezuela and Iraq, members of the Organization of the Petroleum Exporting Countries (OPEC), oppose cuts in output, fearing that prices could fall, but it may take a decision to increase production with Iran’s refusal to sign it as it did in OPEC. Now the main obstacle to reaching an agreement.
Oil prices rose yesterday, supported by a drop in US commercial crude inventories and the loss of storage capacity in oil-producing Libya. US crude inventories fell 3 million barrels to 430.6 million barrels over the week ending June 15, according to the US Petroleum Institute’s weekly report. Brent crude futures were up 40 cents, or 0.5 percent, at $ 75.48 a barrel, compared with their latest close on Tuesday. US crude oil futures rose 36 cents, or 0.6 percent, to $ 65.43. Traders said a drop in Libyan supplies as a result of the collapse of a 400,000-barrel storage tank also helped push prices higher.