OPEC Meeting to Take Place on 20th March in Russia

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Translated by Ollie Richardson for Fort Russ

3rd March, 2016


The meeting of oil-producing countries will be held on March 20th in Russia, the Minister of oil of Nigeria, Emmanuel Kachikwu, announced. According to him, it will be attended by representatives of countries who are OPEC members and countries that are not members in the organization. Mr. Kachikwu noted that producers seek to restore oil prices to $50 per barrel, reports Bloomberg.

OPEC last month cut the volume of oil production by 280,000 barrels per day — to 32,37 million, the sources said in trading companies. It is noted that the maximum decline in oil production was recorded in Iraq, where from February 17th, deliveries of oil from Kurdistan were stopped. Also the level of oil production declined in Nigeria due to the accident and oil spill at a local plant of Royal Dutch Shell in the UAE, where several fields were closed for maintenance.

As was written by “Kommersant”, Russia and the OPEC countries are very close to an agreement on the levels of oil production, which has not happened since at least 2008. The parties may freeze the production at the level of January, so that Russia is in a very comfortable condition. But it is unlikely to happen because of Iran, without which the agreement would be meaningless. However, even in the case of successful negotiations, they will only lead to a temporary stabilization of prices, analysts say.

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