Baku, Azerbaijan, Aug.14
By Leman Zeynalova – Trend:
If OPEC increases the agreed oil production cut quota, it can lead to higher oil prices until it triggers more production by the non-participating producers, Fenner Stewart, Director of Midwest Center for Energy Law & Policy, assistant professor, University of Calgary told Trend.
The expert said he is not sure that OPEC can increase the reduction quota of 1.8 million barrels per day.
“It is hard to say which countries will take the burden of the further cuts or whether non-OPEC countries will also agree for even more cuts in output,” said Stewart, adding that it is tough for the countries, which are making the sacrifices.
Earlier, Saudi Arabia’s Minister of Energy, Industry and Mineral Resources Khalid Al-Falih said that OPEC and non-OPEC countries party to the output cut agreement can consider the possibility of increasing the production cut quota, which is currently 1.8 million barrels per day.
On May 25, OPEC member countries and non-OPEC parties, Azerbaijan, Kingdom of Bahrain, Brunei Darussalam, Kazakhstan, Malaysia, Mexico, Sultanate of Oman, the Russian Federation, Republic of Sudan, and the Republic of South Sudan agreed to extend the production adjustments for a further period of nine months, with effect from July 1, 2017.
The reductions will be on the same terms as those agreed in November.
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