Baku, Azerbaijan, Nov. 27
By Aygun Badalova - Trend:
OPEC will reiterate its previous policy and may even keep oil production targets unchanged at the upcoming meeting on December 4, Charles Ellinas, oil market expert, Executive President, Cyprus National Hydrocarbons Company (CNHC) believes.
"But that does not mean a lot as at present the target is 30 million barrels per (mb/d) day but they are actually producing about 32 mb/d," Ellinas told Trend.
Twelve members are preparing to hold 168th Ordinary OPEC Meeting on Dec.4 in Vienna, Austria.
According to the current quota, OPEC members have agreed on 30-mb/d ceiling level together, however, according to the Cartel's latest monthly report, OPEC's output at October stood at 31.383 mb/d, some 256,500 barrels less than September.
However, according to OPEC's report, estimated demand for OPEC crude in 2015 remains at 29.6 mb/d, an increase of 0.6 mb/d over the previous year. In 2016, demand for OPEC crude is forecast at 30.8 mb/d, around 1.2 mb/d higher than in the current year.
OPEC Secretary-General Abdullah al-Badri has recently said that non-OPEC members should shoulder the burden of balancing the market and cutting supply when prices are high.
Ellinas however does not believe the cooperation between OPEC and non-OPEC countries could be real, and the US is the reason for that.
"In the US shale oil production is commercially driven and not controlled by government. As soon as prices go up shale oil production will also go up, thus affecting oil prices," Ellinas.
Russia has also made it clear that they will not reduce production, he added.
OPEC oil basket price has decreased from $108 per barrel in 1H14 to below $40 currently.