Ten things worth knowing about the Opec-meeting – E24

(E24) Published: 10:26 – 29.11.2016, Updated: 12:45 – 29.11.2016

A day before the Opec spikes the plan is to add the final touch in a binding agreement to cut oljekartellets total oil production, there is great uncertainty that prevails around where agreed by the Opec countries really are.

oil prices are expected to be able to move as much as 20 dollars per barrel in each direction depending on the outcome, according to some analysts.

It is thus not so strange that most follows the prelude closely.

Here are ten things worth knowing about the Opec-meeting:

• Opec and Russia signed in september a letter of intent produksjonskutt, and that this agreement should now be clarified and made binding. In it lies the influence that Opec countries collectively to cut its current production to somewhere between 32.5 million barrels of oil per day and 33 million barrels per day, as well as some non-Opec countries, such as Russia, gathered to cut its oil production by 600,000 barrels per day. In total, it will reduce the world’s global daily oil production by up to 1.7 million barrels, i.e. approximately 2 per cent.
  

and there Shall be an agreement, Opec summits agree on the following:

OLJEEKSPERT: Analyst Trond Omdal in Pereto Securities writes in a note that it is once again the rivalry between Iran and Saudi Arabia, which is the greatest obstacle against an Opec agreement on produksjonskutt.

Photo: Kyrre Lien NTB scanpix

Decision is made – now what?

Analytiker: Saudi Arabia preparing for oil demand on the “no deal”

• If they agree to cut production, it is still uncertain what effect it will have on the oil market and prices. Some oljeanalytikere here at home think the price of oil vl could rise 20 dollars in the short term. Forex analyst Razaqzada believes prices will rise far less, perhaps not more than a little over 50 dollars per barrel. In the longer term will not a produksjonskutt have any effect, according to the analyst. – The oil market will still be flooded with oil because produksjonskuttet is not very large, and at the same time, probably increased the production of oil in the united STATES within a fairly short time to fill on it as to be pulled out of the market, ” he says to Marketwatch. Trond Omdal at Pareto believes that a produksjonstak of 33 million barrels per day will send oil prices up to between 55 and 60 dollars per barrel in the new year.
  
• If they do not agree to cut production, it could mean that oljeprisprognosene for the next year is lowered quite sharply from where they are now. – Balancing of the oil market will then be shifted to past 2017, says analysis supervisor Michael Wittner of Société Générale. According to the Pareto-analyst Omdal will the absence of an agreement mean that oil prices in the short term, will be between 40 and 45 dollars per barrel.