Tehran Iran, Nov.30
Trend:
Saudi Arabia's cooperation with Russia and the US has taken the oil prices out of OPEC control, while the output in these countries has hit the record, Iranian energy expert Abdolsamad Rahmati told Trend.
He went on to add that recently the oil price collapsed due to increase of output among three giant producers, the US, Russia and Saudi Arabia.
Rahmati also said that the OPEC members are set to hold a meeting to discuss the reduction of 1.4 million barrels of oil in Vienna and increase of the oil price.
"If Saudi Arabia and its allies vote for output cut, the rise of oil price would allow the shale producers to have more share in the market," said the expert.
"Saudis need higher prices, OPEC also opposes the price fall. Russia has introduced $70 price for oil however it does not agree with the irrational change in the outputs. Therefore we should wait for the December 6 meeting and its effect on OPEC decision,” he said referring to the upcoming OPEC meeting in Vienna.
The expert pointed out that according to Woods Mackenzie report, in the current situation, during winter there is big risk in the oil market because the OPEC surplus capacity would reach 4 million barrels, currently it is around 700,000 barrels.
"The prediction for 2019 has indicated the rise of oil supply to 1.6 million barrels and the rise of demand to 1.2 million barrels per day. But the surplus of this growth is happening in a situation where Iran's and Venezuela's oil output is headed towards decline and the geopolitical risks to compensate the loss will not be enough for these countries. It means the sanctions against Iran will become harder," he said.