The news which was in updates from past some dates that the Organisation of Petroleum Exporting Countries (OPEC) Vienna in Austria, is trying to cut down the prices of crude oil is now confirmed. The organisation was planning to take the step to boost weak crude prices. This happen because of the theory that the biggest oil dealer and exporter in Asia is trying to cut down the global output.
The plan is practice to limit the output which gets outpaced from the demand for last 2 years. The calculations are made in the month of September in which OPEC planned to production cut from 200,000 to 700,000 barrels a day. This report was also connected with the notice that the prices of crude oil then may get fall to $35 per barrel.
The meeting for the same is going to held on Wednesday, which everyone is spying on. In the meeting, the secretary general of OPEC is going to schedule a news conference. There was a certain increase in the oil prices when Iran and Iraq said to increase the output. The situation then created by Russia who had announced to increase the output.
OPEC is now confirmed to make the prices down, as the countries like Nigeria and Libya requested for the exemptions telling about the production and export os crude oil stop down due to militant attacks. An energy analyst at SCI International shared his views and tells that as the prices of oil will increase the non-OPEC countries will start drilling more oil which will, later on, came as a depress in the prices.
Now the calculations are made that the production is going to hit 8.7 million barrel a day from 2017. The estimate is now higher from the previous one. By the step, many of the oil producers are set down due to the drop down in prices. The further updates from the conference on Wednesday are yet to come. Stay tuned with us for more updates and news feeds like this.