March 29, 2024 10:56 (IST)
Follow us:
facebook-white sharing button
twitter-white sharing button
instagram-white sharing button
youtube-white sharing button
PM Modi has mastered art of manipulating democracy, hurting Constitution: Mallikarjun Kharge | Mafia-turned-politician Mukhtar Ansari dies of cardiac arrest at 63 | NIA arrests key conspirator in Bengaluru cafe blast case | Actor Govinda returns to politics after 14 years of 'vanvas', joins Eknath Shinde camp | 'To browbeat and bully others is vintage Congress culture': PM posts after 600 lawyers write to CJI
Marked sudden fall in international oil prices concerns globally

Marked sudden fall in international oil prices concerns globally

India Blooms News Service | | 28 Sep 2016, 09:57 am
Calgary, Sept 28 (IBNS): A sudden fall in oil prices on Tuesday due to an unsuccessful agreement regarding the production cut, between the oil producing countries in in Algiers has pushed down the international oil prices further by 2 percent.

Dissident member of OPEC (Organization of Petroleum Exporting Countries), Saudi Arabia said that it could not afford cut in production as expected, rather it could still be possible to take up the matter for consideration later sometime in the year.

Participating in the ongoing meeting of International Energy Forum at Algiers, where OPEC and other non OPEC members were present, Saudi Energy Minister Khalial-Falih opined in presence of reporters that Iran, Libya and Nigeria were allowed to produce to their maximum capacity, as seen in the recent history.

Oil prices had fallen less than compared to their 2014 highs. OPEC producers and Russia had been trying for a while to explore means of rebalancing the oil price mechanism that would help boosting oil revenues on which their National budgets depended.

However, analysts voice that even if there were production freeze, excess barrels could not be removed fully. This was the second round of talk to reach an agreement on oil production after first failed attempt in Doha, earlier this April.

Saudi Arabia again stuck to their same argument that Iran had to freeze production, which was Saudi's precondition to reduce their output. But Iran downplayed the demand of Saudi by saying that the role of forum was merely advisory.

All the more, analysts mentioned that current high production rate of Russia and Saudi Arabia combined with the enhanced capacity of Libya and Nigeria rendered this discussion in Algiers almost useless.

Russia's Oil Minister on Tuesday made a statement that Russia would freeze oil production in present level which touched to all time high at 11.73 million barrel per day.

However, Algiers discussion was in sharp contrast with reality as viewed by analysts. What ultimately emerged from the talk was present situation would continue resulting in ongoing overproduction.

Meanwhile Saudi Arabian King Salman on Monday vide a royal Decree declared a wage cut to the tune of 20 percent for all cabinet ministers and reduced other state officials' benefits in a continuing austerity drive to cope with lower oil revenues. This also included members of the Shura that included 30 women members would see 15 percent reduction in their annual allowances for housing furniture and cars.

(Reporting by Chandan Som)
 

Support Our Journalism

We cannot do without you.. your contribution supports unbiased journalism

IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.

Support objective journalism for a small contribution.