OPEC: improved demand and prices will not stay low forever

by **Ponee** Sat Jul 25, 2015 11:35 am

OPEC delegates said two of them Khalijian that is likely to be a decline in oil prices this month, short-term and will not distract the organization from its policy of keeping production high to protect its market share. And brightest Chinese stocks fell and the Greek debt crisis worries about demand, while the Iranian nuclear deal to Tehran's oil exports could lead. And Brent crude oil was trading below $ 57 a barrel Wednesday, crude fell more than ten percent in July. In a major change to its policy of OPEC decided in November not to cut its production target at 30 million barrels per day to boost prices, and sought instead to defend its share in the face of US shale oil and other sources of competition. And OPEC stuck to its strategy at a meeting in June. He quoted Kuwaiti Oil Minister Ali Saleh Al Omair first Tuesday his confidence in the prospects for demand, saying that producing countries expect global economic growth to enhance the strength of prices. This month ruled three delegates from the Member States of OPEC to continue falling prices or OPEC to adjust its strategy and talked about the expectations of higher demand. He said a Gulf OPEC delegate "I do not think that a change in policy. Did not it time for a change for OPEC." "The demand will increase from what it was in the first half of the year, although there is some uncertainty surrounding the economy. Prices will remain near $ 60."

Another Gulf delegate said that even if prices fell slightly below $ 50 a barrel so long to get off in the short term it is unlikely that OPEC cut its production ceiling. He said: "prices will not stay low forever." Saudi Arabia led OPEC policy change in support of its allies, the Gulf despite calls to cut supplies from Iran and smaller producers were afraid of the impact of lower prices on oil revenues. The next meeting of OPEC on the fourth of December In almost certain to renew some OPEC members to call for production cuts in the wake of falling prices. He said Algerian Energy Minister on July 14 that he can call for an extraordinary meeting of OPEC is pushing Iran to other members of OPEC to cut production to make way for the hoped-for increase in exports. But even OPEC delegates from countries prefer a higher price of oil did not expect Saudi Arabia to change its position, at least for the time being.

An official at the non-member Gulf state "It seems that the Saudi method to defeat American shale oil producers is not successful .. but may Iwasalouna".While Iran hopes to boost exports quickly as soon as the lifting of sanctions by the delegates do not expect OPEC Gulf in large volumes of Iranian oil by 2016 and are betting that a rise in global demand next year will absorb the additional supply. The delegates agreed that the fourth of the state support has been cut production in the Gulf with the delegates that it does not need to move by OPEC currently. He said of the low price, "I see a short-term recovery and I expect prices."

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