OPEC countries’ severing ties with Qatar not to affect OPEC+ deal – analyst

OPEC countries’ severing ties with Qatar not to affect OPEC+ deal – analyst

Baku, Azerbaijan, June 6

By Elena Kosolapova – Trend:

The severance of diplomatic relations between Qatar and Saudi Arabia, as well as other OPEC countries, will not affect implementation of the OPEC+ agreement to reduce oil production, said Andrey Polishchuk, analyst at the Russian subsidiary of Raiffeisen Bank.

“Qatar is not a major oil producer. It produces only about 600,000 barrels per day. For comparison, Saudi Arabia produces more than 10 million barrels per day. So everything depends more on Saudi Arabia here. Saudi Arabia was the initiator of extending the agreement. And I think it will not change its plans,” he told Trend.

Bahrain earlier broke off diplomatic relations with Qatar. According to Bahrain’s official statement, it happened due to Qatar’s intervention in Bahrain’s internal affairs. Afterwards, the UAE, Saudi Arabia, Egypt, Yemen, Libya and Maldives also severed diplomatic relations with Qatar.

The analyst pointed out that severing diplomatic relations with Qatar by those countries will surely affect the OPEC activities, but not in terms of compliance with the terms of the agreement to cut oil production.

He noted that judging by the fact that the agreement to curtail oil production was complied with well enough in the previous six months, there should not be problems with its implementation in the next nine months as well.

If the deal is complied with in the next nine months, one can expect certain recovery in prices due to the growth in demand, according to him.

“Now, the global oil demand is rapidly growing and I think that this growth rate will be maintained for years to come,” Polishchuk said. “The growth in demand should partially remove the surplus of oil from the market. Thus, the balance of supply and demand in the market must be found approximately in the first half of 2018.”

Meanwhile, the analyst said that the oil prices are unlikely to grow above $60 per barrel.

Speaking of the prospects of another OPEC deal extension in nine months, he noted that this will not be necessary if some balance is found by that time.

OPEC and non-OPEC countries held a meeting in Vienna May 25 to make a final decision on extension of the oil output cut deal reached in 2016. The oil producers agreed to extend oil output cuts for nine months. Azerbaijan also supported the decision.

In December 2016, OPEC and non-OPEC producers reached their first deal since 2001 to curtail oil output jointly and ease a global glut after more than two years of low prices. That time, OPEC agreed to slash the output by 1.2 million barrels per day from Jan. 1, while non-OPEC oil producers such as Azerbaijan, Bahrain, Brunei, Equatorial Guinea, Kazakhstan, Malaysia, Mexico, Oman, Russia, Sudan, and South Sudan agreed to reduce output by 558,000 barrels per day starting from Jan. 1 for six months, extendable for another six months.

On May 25, it was agreed to extend the production adjustments for a further period of nine months, with effect from July 1, 2017.

UN chief welcomes U.S. re-engagement with WHO
UN chief welcomes U.S. re-engagement with WHO
Biden reverses U.S. withdrawal from WHO
Biden reverses U.S. withdrawal from WHO
UAE signs deal with U.S. to buy 50 F-35 jets and up to 18 drones
UAE signs deal with U.S. to buy 50 F-35 jets and up to 18 drones
Loading Bars
Latest
EBRD, Turkmenistan to implement new joint projects in 2021
Largest gas refinery in Middle East to be unveiled in SW Iran
UN chief welcomes U.S. re-engagement with WHO
Biden reverses U.S. withdrawal from WHO
Kazakhstan unveils 11M2020 trade value with Turkey
France's daily COVID-19 cases hit two-month high
UK records highest daily coronavirus death toll
Israel registers 9,089 new COVID-19 cases, 574,718 in total
Portugal experiences worst day of COVID-19 pandemic
Iran ready to build Herat-Mazar-i-Sharif railway: Roads min.
Tourism becomes key source of foreign-exchange earnings in Georgia
Georgian domestic exports up 3.5%
Amazon sues EU antitrust regulators for letting Italian case go ahead
Korean logistics company ULP invited to invest in Kyrgyzstan
Turkey reports over 6,400 new coronavirus cases
Kyrgyzstan's Central Election Commission approves election results
UAE signs deal with U.S. to buy 50 F-35 jets and up to 18 drones
WHO chief congratulates Joe Biden and Kamala Harris on their inauguration
Qatar reports 271 new COVID-19 cases, 148,000 in total
Over 40 dead after migrant boat capsizes off Libya: UN agencies
Joe Biden sworn in as 46th President of the United States
Kazakhstan to develop strategies to ensure financial stability in banking sector
Iran’s FM to visit Azerbaijan
COVID-19 vaccinations in Turkey exceed 1 million in 1st week
CBI Governor says part of Iranian frozen assets released
Georgian Parliament calls Pension Agency Head for transparency
Kyrgyzstan receives COVID-19 diagnostic reagents from Russia
Trump leaves Washington, skips incoming president Biden's inauguration
Blast rocks building in downtown Madrid
Azerbaijan shows footage from Nadirkhanli village of Kalbajar district (PHOTO/VIDEO)
Africa’s COVID-19 death toll tops 80,000, reports WHO
French online newspaper publishes article about January 20 tragedy
Memory of victims of January 20 tragedy honored in Azerbaijan’s Shusha city (VIDEO)
Turkish Foreign Ministry honors memory of Azerbaijani martyrs of January 20, 1990 tragedy in Baku
Turkish Ministry of National Defense talks January 20, 1990 tragedy in Baku
Azerbaijan confirms 897 more COVID-19 recoveries
Iran unveils amount of saved money by major mining companies
Anniversary of January 20 tragedy marked in Azerbaijan's Shusha
Events of Jan.20, 1990 divided life of Baku citizens into "before" and "after"
Kazakhstan bans import of Azerbaijani tomatoes
Review of Georgian exports to China
Azerbaijani troops hold several events in connection with January 20 tragedy (PHOTO/VIDEO)
Georgia increases wine exports to Azerbaijan
Azerbaijan becomes Georgia's second export partner
Kazakhstan reports decrease in mutual trade volume with Vietnam
Geostat reveals data on China's exports to Georgia
Iran reveals COVID-19 data for January 20
Turkey mobilized to support Azerbaijan in post-war period, says ambassador
Uzbek-Korean JV names volume polyethylene output in 2020
Container shipping rates surge in Georgia
Passenger transportation volume by road surges in Kazakhstan
Georgia may lift restrictions on international flights
Georgia sees decrease in electricity consumption
January 20 events of 1990 aimed to strangle Azerbaijan’s fight for independence – historian
Turkmenistan’s Mary State Power Plant names production indicators of 2020
Iran dismisses having any 'secret talks' with Biden's team to bring US back to JCPOA
New geopolitical reality following Karabakh war to make contribution to GDP growth in Azerbaijan - Economy Minister
Iran to commit to JCPOA obligations - if Europe, US return - FM Zarif
Commerzbank deepens partnership with Microsoft
Central Bank reveals volume of property appropriated by Georgian commercial banks
Kazakhstan's Baikonur Cosmodrome starts launching works for 2021
Azerbaijani Kapital Bank’s total assets increase as of 2020
Carnations blooming today along with khari bulbul in Azerbaijan – Turkish FM
Exports of Iran's steel products declines
French ambassador to Azerbaijan talks about January 20 tragedy
Turkmen carpet weaving enterprise reveals production volume
Iran may cancel additional protocol on nuclear deal - Foreign Policy Commission
Azerbaijan keen to develop relations with Turkey, Pakistan in almost all spheres
Azerbaijani people honoring memory of 20 January tragedy victims (PHOTOS)
Caspian Shipping Company’s marine flotilla reveres memory of January 20 martyrs (VIDEO)
Armenians destroyed mausoleum of outstanding Azerbaijani poet in Shusha - monitoring results
Azerbaijan's State Service for Property Issues unveils amount of transfers to state budget
Supply of Indian manufactured vaccines to neighbouring and key partner countries
Azerbaijan progresses with cotton yields in 2020
EU's Michel calls on Biden to form new transatlantic pact
Jewish community in Azerbaijan revere memory of victims of January 20 tragedy
India to gift 2 mn doses of Covid-19 vaccine 'Covishield' to Bangladesh
India, Japan sign Memorandum of Cooperation to help promote movement of skilled workers
Georgia reports 469 new COVID-19 cases for Jan.20
UK ambassador to Azerbaijan makes statement on January 20 tragedy
Benefits provided for Uzbek entrepreneurs likely to be extended
Share of domestic exports up in Georgia
Azerbaijan discloses number of mandatory health insurance services in 2020
Azerbaijani president, first lady visit Alley of Martyrs on 31st anniversary of 20 January tragedy (PHOTO)
India, Oman Hold Discussions On Bilateral Cooperation
Turkmenistan's Turkmengas to buy chemical products via tender
Uzbekistan, Turkey to work on approving agreement on preferential trade
Azerbaijan’s Kapital Bank reveals 2020 net profit
EU Delegation mourning victims of “Black January” tragedy - statement
Copper ores and concentrates top export goods in Georgia
Azerbaijan holds minute of silence to honor January 20 victims (PHOTOVIDEO)
Modi gets SOS message for vaccine from Caribbean nation that stood by India
Black January means symbol of struggle for independence - Charged ’Affairs of Azerbaijani Embassy in Ethiopia
Iran’s South Pars Gas Company beats new record on export
First Vice- President Mehriban Aliyeva shares Instagram post on 20 January tragedy (PHOTO)
Uzbekistan’s Central Bank to place bonds on republican currency exchange
Georgia sees decrease in external merchandise trade
Turkmenistan's Mary region opens tender for construction
Turkmenistan signs contract for aircraft purchase from French Airbus
UK inflation rises a little more than expected in December
All news