OPEC decided to maintain oil production at 30 million barrels/day

On November 27, the Organization of the Petroleum Exporting Countries (OPEC) decided to maintain production at 30 million barrels per day despite the supply surplus and oil prices having fallen by about a third in recent months.

Immediately, world oil prices continued to plummet to a record low in the past four years.

Illustration photo. (Source: AP)

After the meeting in Vienna (Austria), 12 OPEC member countries issued a statement expressing concern about the rapid decline in oil prices in recent months and the increase in production from non-OPEC countries. However, OPEC still agreed to keep production at 30 million barrels/day as agreed since December 2011.

The organization believes that oil price stability, at a level that does not affect global economic growth but still allows producing countries to have adequate income and invest to meet future needs, is vital to the health of the world economy. Therefore, OPEC has decided to keep production unchanged to restore market balance.

OPEC Secretary General Abdalla Salem al-Badri said that current oil prices can be considered good prices.

In response to OPEC’s decision, oil prices on the world market continued to decline. Just minutes after the organization ended its meeting in Vienna, the price of West Texas Intermediate (WTI) for January 2015 delivery on the New York market fell to 69.11 USD/barrel, the lowest level since May 2010.

In London, the price of North Sea Brent crude oil for the same period was 72.74 USD/barrel, also the lowest level in the past 4 years. Since June 2014, the price of oil on the world market has decreased by 35%.

According to plan, the next regular meeting of OPEC will take place on January 5, 2015, also in Vienna, and the issue of production cuts may be discussed./.

According to VNA