OPEC May Cut Down Crude Production Quota in 2015

The Organization of Petroleum Exporting Countries (OPEC) stated that it might cut down the production quota of crude oil in 2015. Because of this, international oil price made a considerably rebound on 16th September. 

 

Abdulla Salem El-Badri, the general secretary of OPEC revealed that the organization might reduce the daily crude production by 500 thousand barrels. The crude production of 30 million  per day was decided to remain at the OPEC ministerial conference in June. This quota is originally made in 2011. It has never been changed since then. The current crude production of OPEC accounts for nearly one-third shares of the global oil market. 

 

OPEC released the monthly oil market report on 10th September, and lowered the prediction on growth of international crude demands. According to OPEC, global crude demands will grow by 1,050 thousand barrels per day in 2014. This is 50 barrels less than previous prediction for the member countries of OEDC having weaker demands than expectation. It is estimated that global crude demands would rise by 1,190 thousand barrels per day in 2015. 

 

People keep an eye on the monetary policy meeting of FED which is held from 17th to 18th. After this meeting, Yellen the president of FED will hold a press conference and disclose the latest economic prediction. 

 

When the market closed on 16th, the price of light crude futures which will be delivered in October rose by 1.96 USD in New York Comex. Ended with 94.88 USD per barrels, the crude price increased by 2.1%. The price of London Brent crude futures which will be delivered in November grew by 1.17 USD. Ended with 99.05 USD per barrels, the increase was 1.2%.