Doubts about OPEC deal still exist – analysts

Baku, Azerbaijan, Dec.5

By Leman Zeynalova – Trend:

OPEC agreement reached in Vienna is not such a big deal for the world economy, according to the analysts of the UK Capital Economics consulting company.

The rise in oil prices after the cartel finalized the deal, is only a little higher than it was in October, shortly after an output cut was first discussed, said the analysis obtained by Trend.

As such, the deal is only a small positive for energy producers and only a small negative for consumers, who will still benefit from much lower prices than were assumed to be the ‘new normal’ a few years ago, the analysts believe.

Capital Economics said that the rise in oil prices gives a misleading impression of the wider importance of the latest OPEC meeting.

“Note first that this meeting simply fleshed out a preliminary agreement to cut output (the ‘Algiers Accord’) made at the end of September,” said the analysis.

Moreover, Capital Economics states that the doubts about the deal have not gone away.

OPEC’s compliance record is poor and it remains to be seen whether it will be able to deliver the promised output cuts, according to the analysts.

“The deal also appears to depend on friendly non-OPEC countries cutting too. Russia in particular may not prove to be a reliable partner. In contrast, it is pretty much guaranteed that US output will continue to recover,” said the analysis.

During the Vienna meeting held Nov.30, OPEC members decided to implement a new OPEC-14 production target of 32.5 million barrels per day.

The decision was made in order to accelerate the ongoing drawdown of the stock overhang and bring the oil market rebalancing forward.

Earlier, former Saudi Arabia Oil Minister Ali al-Naimi said that OPEC’s agreement to cut production for the first time in eight years has the potential to balance the oil market, as long as everyone sticks to it.

"The only tool they have is to constrain production," al-Naimi said of OPEC at an event in Washington, D.C. "The unfortunate part is we tend to cheat."

Non-OPEC countries are expected to cut the oil output by 600,000 barrels per day. Russia has agreed to reduce the oil production by 300,000 barrels per day.

The meeting of OPEC with non-OPEC countries is expected to be held Dec.10 in Vienna.

Paris does not recognize so-called "Nagorno-Karabakh Republic" - Foreign Ministry
Paris does not recognize so-called "Nagorno-Karabakh Republic" - Foreign Ministry
Azerbaijan sends note of protest to France (UPDATE)
Azerbaijan sends note of protest to France (UPDATE)
Italian municipalities adopt documents expressing solidarity with Azerbaijani people (UPDATE)
Italian municipalities adopt documents expressing solidarity with Azerbaijani people (UPDATE)
Loading Bars
Latest
Turkey reports over 29,000 new coronavirus cases
813 more coronavirus cases recorded in Kazakhstan over 24 hours
Kazakhstan increases export to Greece despite COVID-19
World Bank to help Ukraine purchase COVID-19 vaccines
Sweden to reach COVID-19 peak in two weeks: forecast
Imports of fuels and lubricants up to Georgia
Trump says will leave White House if Electoral College votes for Biden
Moscow documents 77 deaths from COVID-19 in past 24 hours
WHO urges African states to strengthen readiness for COVID-19 vaccine
UK records another 17,555 coronavirus cases with 498 cases
China calls for healthy, stable military ties with U.S.
Italy reports 29,003 new coronavirus cases, 822 deaths - health ministry
Russia's Sputnik V developers call on AstraZeneca to try combining vaccines
Paris does not recognize so-called "Nagorno-Karabakh Republic" - Foreign Ministry
Recovery of oil prices has positive impact on Kazakhstan’s external balances - IHS Markit
Group of German medical experts arrives in Kyrgyzstan to fight COVID-19
Georgian NCDC Head urges people over 70 to stay at home except in necessary circumstances
Iran, Russia to cooperate on COVID-19 vaccine development
Bitcoin price down 12.7%
Armenian eco-terror in Karabakh constitute serious threat to peace and security in region - opinion
Hungary, Poland double down to try to eject rule-of-law condition from EU budget
Over 3,500 coronavirus-related deaths recorded in Moscow in October
Belavia resumes regular flights from Baku to Minsk in early December
Iran hopes Kish-Istanbul-Abadan flights to improve its trade
Kazakhstan Railways opens tender to buy welding equipment
Georgia to support businesses amid new coronavirus restrictions
WB extends deadline for implementation of agricultural project in Azerbaijan
Turkey steps up inspections as coronavirus pandemic figures climb
Cavushoglu and Stoltenberg discuss situation in Karabakh
Swedish royals test positive for COVID-19
England reveals new regional COVID tiers in fight against coronavirus
Azerbaijani gymnasts reach finals of 36th European Championship in Ukraine
Georgia continues to support its citizens amid COVID-19 pandemic
News on return of Azerbaijani soldier captured by Armenians false, relative says
Azerbaijan sends note of protest to France
Ample opportunities for investments to be created in Karabakh – minister
Azerbaijani's negotiations with UAE on renewables nearing completion
Kazakhstan, Mongolia eye signing roadmap for trade, economic co-op
Russia bans import of tomatoes from Uzbekistan’s Fergana region
36th COMCEC session opens under chairmanship of Turkish president (PHOTO)
Uzbek Ministry of Finance publishes draft law on increasing taxes on gasoline, diesel
Russian Gazprombank predicts Azerbaijan's economic recovery in 2021
iPhone 12 Pro Max and iPhone 12 Mini now at Azercell Exclusive shops!
Iran becomes self-sufficient in building oil, gas platforms
Cotton growing in Azerbaijan hits record - agriculture ministry
Italian municipalities adopt documents expressing solidarity with Azerbaijani people
Uzbekistan to grow industrial cannabis in Sardoba district
Azerbaijan detects 3,705 new COVID-19 cases, 1,609 recoveries
Turkmen Ministry of Construction opens tender for equestrian sports complex construction
Azerbaijani, Saudi FMs exchange views on current situation in Karabakh
Uzbekistan reveals data on its ICT sphere enterprises and organizations
Azerbaijan to export persimmons to Slovakia and Czech Republic
Level of religious tolerance in Azerbaijan is much higher than in France - ISESCO ex-director
Kazakhstan's exports to Switzerland decrease year-on-year
Azerbaijani medical insurance agency signs contract with tender-winning IT company
Resolution adopted by French Senate must be canceled – Azerbaijani NGO head
Volume of Turkish textile clothing supplies to Kazakh market surges
Latvian AirBaltic cancels Riga-Tbilisi-Riga flights
Reconnaissance work completed within Baiterek space complex creation in Kazakhstan
Thermal power plant modernization, other projects underway in Kazakhstan's Karaganda
Georgia imposes further restrictions to curb spread of coronavirus
Georgian carrier to launch regular cargo flights from China to Europe
Russia's Rostelecom expects to develop transit routes through Turkmenistan
Average monthly salary in Azerbaijan's Nakhchivan rises
Azerbaijani, Afghan FMs discuss latest situation in region
WB, AIIB to fund rural infrastructure development in Uzbekistan
Azerbaijani, Indonesian FMs stress importance of trilateral ceasefire statement
Austria fully supports Uzbekistan obtaining of EU’s GSP beneficiary status
Turkmenistan's Dashoguz region opens tender for installation work
France not part of Karabakh settlement, but part of problem - Turkish defense minister
Japanese companies to provide technical support for terry production in Uzbekistan
Germany's hotspot district to launch COVID-19 mass tests for children
Yield of citrus fruits in Azerbaijan up
Capital of Kazakh companies operating in Turkey revealed
Iran boosts its pistachio exports
World Economic Forum announces Azerbaijan's road quality score
Share of assets in Azerbaijani banking sector declines
Kazakhstan eyeing amending legislation to support renewable energy dev't
Georgian Hualing Free Industrial Zone plans to finalize deal with 4 new companies
Mortgage lending in Azerbaijan through state line grows manifold
Kazakhstan to launch hundreds of industrial projects before year-end
Azerbaijani ICT company wins tender on purchase of licenses
Central Bank of Azerbaijan discloses data from foreign exchange auction
Employment in Iran's West Azerbaijan Province increases
Buta Airways to Increase the Frequency of Flights Performed to Izmir
Azerbaijan, Hungary discuss possibilities of attracting investors to liberated territories
Georgian Huliang FIZ offering available land plots to potential investors
Azerbaijani NBCO talks about its activities amid coronavirus
Azerbaijan’s carpet producer signs tender contract
Many members of French Senate unaware war in Karabakh ended (VIDEO)
Number of people infected with coronavirus pandemic in Iran exceeds 900,000
Baku Stock Exchange admits local investment company
Uzbekistan eyes to set up local production of various vaccines
France does not deserve Azerbaijan’s confidence – senator
Bahar Azadi gold coin price still falling in Iran
Bank mortgages in Azerbaijan rise
Full text of Azerbaijani parliament’s statement against French Senate’s resolution
Iran's economy remains strong and steady – Iran's president
Turkmenistan to be vital strategic partner, gas supplier to China long-term - Wood Mackenzie
EDB talks Kazakhstan's economy growth forecast, return to pre-COVID levels
All news