OPEC in Algeria is over. According to news agencies, the exchange of views of the meeting participants led to a preliminary agreement on limiting the volume of oil production.
Proposed to reduce the total oil production by 796 thousand barrels per day by OPEC member countries. The largest oil producer, Saudi Arabia, is ordered to reduce production by 442 thousand barrels per day compared to August. Iran is expected to set a quota of 3 million 700 thousand barrels of oil per day. That’s 52,000 barrels a day more than Iran’s oil production last month. The rest of the OPEC member countries have also been set to reduce their oil production. An exception was made only for Nigeria and Libya, which, due to domestic political problems, have already significantly reduced oil production.
Thus, despite the skepticism of most market experts regarding the possible outcome of the OPEC meeting in Algeria, an agreement was reached. However, it is only of a fundamental nature so far. It is expected that the official document on oil production limitation will be signed at the OPEC summit in November 2016.