OPEC: towards a new reduction of the production?

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OPEC seems ready to play the whole for the whole “to maintain to the purchasing power” of the producer countries members of the trust.

The Organization of the Oil exporting countries could again reduce his production declared Tuesday in London Abdallah el-Badri, the general secretary of the trust. ( Finance Information City )

A measurement of this type could be considered if the oil prices continue to fall in spite of the announced reduction Friday.
“We will have to wait and to see how the market reacts (but) if this problem continues it will be necessary to carry out a new reduction”, declared Abdallah el-Badri with the press in margin of the conference Oil and Money.

Last Friday, OPEC had decided to reduce its offer of 1,5 million barrels per day, thus trying to stop the fall of the oil prices in full international financial crisis.

Also let us point out that at the same date, the trust had invited the countries non-members of the trust, in particular Russia, to join its efforts to stabilize the ransom prices black which lost more half of their value since the record of the barrel with 147,50 dollars in July.

OPEC underlined “that one did not have to expect that (it) that is to say the only one to carry the burden to restore the market equilibrium.” Also it invited “the countries producers-exporters non-members of OPEC to contribute to its efforts to restore the prices on reasonable levels and to eliminate from the detrimental and useless fluctuations”.

The president of OPEC, the Chakib Khelil Algerian had already expressed on several occasions before the meeting, the desire that producers not-OPEC like Russia, Norway or Mexico, take part in the effort of rebalancing of the oil market.

“If we make a radical decision, they are the countries non-members of OPEC which will benefit from it more”, he had affirmed Thursday in addition, with a restricted group journalists.

The probability that producer countries out-OPEC cut in their production to join the efforts of OPEC seems however very weak.

Russia, producing first world with the neck and neck with Saudi Arabia, should abstain from, in spite of its bringing together with OPEC reaffirmed Friday. A reduction of its own volumes would do nothing but penalize it still more, whereas it must above all stabilize its national production.

Whereas Norway and Mexico already pain to stop the fast decline their layers, the spokesperson of the Norwegian ministry of Oil and Energy excluded Friday to reduce his production of oil under the current conditions of the market. According to figures of 2007, Norway is the fifth world oil exporter.