In full shock by the announcement of Qatar leave the OPEC, the petroleum exporting countries meet in Vienna with a great topic on the table: the proposal of Saudi Arabia, the undisputed leader of the club, to cut the offer with the hope of raising prices, in the doldrums since October. Riad collides as well with the U.S., its major western ally. President Donald Trump has clearly shown their desire for cheap oil. Before starting the meeting, all indications are that the saudis will achieve some kind of trim. The question is how much it will be.
MORE INFORMATIONQatar announces its exit from OPEC to the downward Pressure on the oil The excess supply and the cooling economic relax the price of crude
“Any member State has the sovereign right to leave the organization, because it does not require approval by the Conference of OPEC”, he answered with coldness, the cartel of producers in the sit-in qatar, a member of the club for more than half a century. The motion of Qatar does not anticipate a large effect on the oil market as a producer of crude oil side. But yes, it is a symptom of the increasing loss of influence of the OPEC in front of the ever-increasing weight of two large players: Saudi Arabia and Russia —that is not a part of this club of exporters— services, which tend to make their decisions and then let the rest of producers ratifying.
So it seems that's going to happen now also in Vienna. Saudis and russians met before the summit to bring their positions closer on a matter where they have interests distinct: Riyadh wants to raise prices at all costs —the barrel of brent was sold yesterday to us $ 62 when two months before he surpassed the 86—, and this raises an overall cutback of 1.3 million barrels per day. Meanwhile, Moscow prefers to make cash even at a lower price-to-coast to cut the offer only the minimum, or do it more gradually.
“All of us, including Russia, have agreed that it does lack some kind of reduction,” he said in Austria the Oil minister of Oman, Mohammed Bin Hamad al Rumhy, according to Reuters. This agency ensures, citing two sources of the delegation, the minister of Energy Russian flew yesterday to Moscow to get an okay end to president Vladimir Putin, who last week agreed with the crown prince arabia, Mohammad Bin Salman, to continue the cooperation in the oil market that unites the two great.
The final decision can upset Trump, who has become to use your Twitter account as a weapon against the plans of Saudi Arabia, the country that he defended in the scandal by the brutal murder of journalist Jamal Khashoggi. “I hope that OPEC will maintain oil flows and not restrict them. The world does not want to see higher prices!”, tweeted.