OPEC's fight is just beginning for the oil market

global
the struggle for the oil market between OPEC and
non-OPEC producers,
which shocked the market of "black gold"
and the blame for the biggest price fall with
the financial crisis, only
It begins. He writes about this on Wednesday The
Wall Street Journal, with reference to
The International Energy Agency.

The price of oil
It fell against the background of excess production caused by
"Shale boom" in the US, and a slowdown
demand. This combination of factors put
under attack the positions of some of the largest
manufacturers in the world "black gold".

All
the above has led to the fact that
real war unfolded in the world of
share of the market, which began with the
OPEC's November decision not to cut
production when prices fall and
provide the market to establish itself
equilibrium energy prices.
This was a strong signal to the fact that
cartel was not going to adjust over
market prices for its competitors
imagine the harm.

In its fresh
monthly review of the IEA oil market
said that OPEC tactics at some
degree work. slate manufacturers
in the US for several months forced
It was to reduce costs. increase in production
I stopped. IEA expects production growth
shale oil in the US will slow down
in May to 80,000 barrels daily.

Nevertheless,
other manufacturers are not included in
OPEC continues to boost production.
Production in Russia unexpectedly
It jumped by 185 thousand barrels per day
in April (on an annualized basis), and
Brazil in the I quarter
increased by 17%. Persistently growing and production
Oil in China, Vietnam and Malaysia. IEA
predicts that the Chinese production in
this year will rise to 4.3 million barrels per
day (100 thousand per day). recent growth
oil prices could again to "unfreeze"
process in the wells, the work on
which it was suspended due
reduce investment.

"Thus
way, it is too early to assert that OPEC
He won the war for market share. Battle
just beginning, "- says
IEA.

In his
report on Wednesday raised Agency
production growth forecast for countries that do not
members of the cartel, with 200 thousand barrels
per day to 830,000.

In June
Ministers are expected to meet relevant
of the member countries of OPEC, during which
officials discuss oil market and that,
whether through its OPEC
productivity attempt to regulate
prices. At this time in the summit program
enter and secret negotiations with members
other countries - for example, Russia. Informal
OPEC leader Saudi Arabia, not
It shows no signs of retreat
of its strategy. according to the survey
IEA, its production rose in April
to 21.3 million barrels per day (this is the most
highest level since September 2012 and
1.4 million barrels more than in the annual
terms).

And indeed,
November decision not to reduce the group
production in the pursuit of high prices
- only the "first step in the plan, which
It is to build the actual
production and aggressive investments
in future production capacity "
IEA says. At that time, both outside
cartel manufacturers (e.g., USA)
reduce the cost of oil production,
Kuwait, Saudi Arabia and the UAE are constantly
expand its exploration program and
commissioning of new fields.
Oil production in Iraq has reached in
April, its highest level in
the last 36 years.