Experts: Extension of the "OPEC" cut production agreement occurs the balance of world oil markets

Economy and stock exchange

After remarks by Saudi Energy Minister Khalid al-Falih during his participation in the St. Petersburg Forum, the Organization of Petroleum Exporting Countries [OPEC] and countries outside of it, including Russia agreed to extend the agreement to reduce oil production and the assurances of the Saudi minister that there is a need for more talks with non-states Members of the Organization participating in the agreement, which reduced production by 1.2 million barrels per day, which ends at the end of this month.

For his part, experts and specialists in the oil markets said that the response of the United States of America to the consensus of producers within OPEC and outside countries to extend the reduction of production was by announcing the increase in surplus oil reserves, saying, "The United States of America in that period has the ability to sell The surplus of the 4.5 million barrels of oil surplus over the US strategic stockpile of oil, pointing out that the global market witnessed after the decline in economic growth rates as a result of the trade war between the United States of America and China and the increase of US supplies of oil All these reasons led to the maintenance of oil production policies as they are during the second half of this year.

The experts and oil market specialists for the "seventh day" that the surplus stock in the United States of America will control the supply and demand and the level of oversupply, saying, "It is one of the reasons for the unexpected surplus of storage and that this surplus of US stocks will be given alternative alternatives, including 1.3 times the size of what has been agreed within the Organization of the Petroleum Exporting Countries. It will also give some calm to the World Petroleum Exchange and short-term contracts that benefit from low prices and volatility.

The experts pointed out that oil prices are expected to fluctuate for a period of 5 months below $ 70 a barrel. There was no direct confrontation between the United States and Iran. Up to 1.7 million barrels per day.

US crude inventories rose unexpectedly last week, while gasoline inventories and distillates increased more than expected, according to the US Petroleum Institute. Crude stocks rose 3.5 million barrels in the week ending May 31 to 478 million barrels, Which indicated a decrease of 849 thousand barrels per day.

Since the beginning of January, producers in the Organization of Petroleum Exporting Countries [OPEC] and outside countries, including Russia, have cut oil supplies by 1.2 million barrels per day. The agreement ends at the end of this month.