| Dhaka, Thursday, 29 February 2024

Saudi, Russia agreed oil production freeze

Update : 2016-02-16 22:12:56
Saudi, Russia agreed oil production freeze

The world's top oil producers agreed to freeze oil output at the January level to stabilize an oversupplied market in a speech on Tuesday, Saudi Arabia and Russia, Qatar's energy minister said.

But they have made conditional on the approval of other major producers in the agreement.

Saudi and Russian oil minister, following the other major producers trial that provided ", along with Venezuela and Qatari counterpart () agreed to freeze production at the January level," Qatar's Energy Minister Mohammed Bin Saleh Al-Sada said.

"This step means the market to stabilize," forever, which asked for information on the meeting in Doha is acting president of the OPEC oil group, as "successful".

Saudi Oil Minister Ali al-Naimi said: "This is a review in the next few months that we have a program, and it is decided that we will need further steps to accept stable and market.

"We do not want significant gyrations in prices. We do not want a reduction in supply. We want to meet the demand and we want a stable oil price," he said.

Traders expected to cut production instead hung a feel because the market was muted, output hit a record high level especially.

For oil per barrel higher late morning deals $ 33.89 April delivery added 50 cents, Brent North Sea crude rose.

US markets closed Monday level of West Texas Intermediate for March delivery $ 29.79 a barrel, 35 cents.

"When a major step officials are following the other major producers trial that provided the key words 'full steam ahead' approach, this statement before the Saudi idea," said ETX Capital analyst Daniel Sugarman.

"It seems as if the oil are an initial salvage experience in response to the announcement, but the nation as well as long-term changes that may result from the reaction of some was not involved in this conference," he said.

Market disappointed

It was to control nearly 19 months after OPEC production and decrease the price of oil in the first attempt by non-OPEC exports.

Oil has fallen about 70 percent since June 2014, concerns about supply hit by sluggish demand and the global economic outlook.

World market prices have come under renewed pressure after capturing international sanctions connected with the return of the nuclear program of Iran.

"We have enough for that freezing January level, and now the market is that, believe, four of us," the Saudi minister said.

Qatari minister said that "intensive communication" among other OPEC and Iraq and Iran to win their approval and support will immediately start with the non-OPEC producers.

Both steps crude exports and the world economy, said the direct contact with the substance, the consumer will benefit.

Naimi said OPEC and an agreement between non-OPEC producers should be there.

"In fact, it is not cut agreement (to freeze crude production) a condition January level," said City Index analyst Fawad Razaqzada.

"The news that some people do not, expect to see a cut because of a production freeze actually slightly disappointed the market," he said.

13-nation OPEC oil group, of which Saudi Arabia, Venezuela, Qatar and Iran sees US oil producer sales are members, as refrain from cutting output to maintain its market share despite competition ,.

Russia, whose oil is not a member, it's recession-hit economy with further losses gang decline in oil.

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