A bad decision

OPEC members concluded an agreement to reduce the total daily oil production from 33.6 million barrels to 32.5 million. It is reported by Reuters. The agreement concluded at a meeting in Vienna enters into force on January 2017.

OPEC made a similar decision for the first time since 2008. Against this background, the price of North Sea oil Brent rose by more than 9 percent, exceeding $ 50 per barrel.

Saudi Arabia reduces the production of 500 thousand barrels per day, Kuwait, Qatar and the UAE - in the amount of 300 thousand, Iraq - by 200 thousand barrels. Meanwhile, Iran is allowed to continue to increase production volumes.

Indonesia did not agree with the terms of the agreement. Its membership in OPEC is suspended, and the volume to which it was supposed to reduce prey is redistributed between other countries.

The agreement also calls for exporters who are not included in OPEC to reduce the total daily production of 600 thousand barrels. Of this volume, half - 300 thousand barrels - falls on Russia.

As TASS reports with reference to the head of the Russian Ministry of Energy Alexander Novak, Moscow agrees to such an offer. According to the official, in the first half of the future, Russia will gradually reduce production "in a short time based on technical capabilities."

Moscow has been going to reduce oil production for the first time in 15 years.

Azerbaijan and Kazakhstan expressed the readiness to reduce oil production from other countries that are not included in OPEC.

Negotiations OPEC with exporters who are not part of the organization are scheduled for December 9th.

Russia, trying to ensure the growth of oil prices, has achieved from last winter to ensure that OPEC froze the volume of production. However, Saudi Arabia, which occupies a leading position in the organization, refused to take such a step until Iran agrees to this. Meanwhile, Tehran, after the in the fall of 2015, sharply increased the volume of oil production and refused to reduce them.

However, at the end of September, Riyadh changed his position. The kingdom said that the decision to reduce production will allow Iran, Libya and Nigeria to produce oil in maximum volumes, which can be considered reasonable. At the same time, a preliminary agreement was reached on a reduction in production volumes, now drawn up at a meeting in Vienna.

The new OPEC meeting is scheduled for May 25, 2017. It is supposed to evaluate the results of the measures taken and, possibly, extend the freezing of oil production volumes.