oil prices

oil prices

SINGAPORE (Reuters) - FACTS Global Energy, the company said (Av.ja.ba) specializes in energy consulting on Thursday that it is unlikely that the Organization of Petroleum Exporting Countries (OPEC) to cut production to support prices before you see a reduction of production in the United
States, Russia and Iraq
oil prices.

Oil rose about fifty percent of the lowest level in 12 years struck less than two months after Saudi Arabia, Qatar, Venezuela and Russia pledged to freeze supplies at January levels if others cooperate. The United States, Russia and Iraq are among the top five oil-producing countries in the world.

Said Fereidun Fesharaki of Av.ja.ba company in the event organized by Thomson Reuters, "Everybody knows that at some time will have to reduce production, but this has not come too soon after and highly unlikely to happen in the near future."

"What they want to achieve is to see production cut in several areas.

"The three most important from my perspective is to see some cuts in production in the United States and Russia ... and seeing the commitment of Iraqis also limit the increase in production."

Fesharaki said that it is expected that the descent of oil prices lead to reduced production in the United States, including at least 500 thousand barrels per day in the current year.

For Russia, he said, "I do not see any room to move thoughtfully, but may result in the development of the economy and rates of reduction that we see in multiple fields to cut production in the end to be between 200 thousand and 300 thousand barrels per day."

He pointed out that Iraq does not have little incentive to cut production, while the Iranians studying the timing of production of 500 thousand barrels per day extra to avoid getting into a dispute with the Saudis.

It is expected that the world's excess oil production is declining in the current year due to the decline of production in the United States, Russia and in the light of expectations that strong demand growth remains at 1.3 million barrels per day. By the end of 2016, the consulting firm predicts that oil stocks go down 50 percent from its level at the beginning of the year.

Fesharaki said "It's hard to imagine the descent of the price from $ 50 a barrel by the end of the year

massa