Rapidan Energy Group President Bob McNally said: OPEC + meeting Today, Wednesday, is “really important”, followed by a press conference not just to make a statement but to record a “position”, a word that really describes what “OPEC +” is doing.
Bob McNally added in an interview with “Al Arabiya”, on the sidelines of the “OPEC +” meeting in Vienna, that it is about addressing weak fundamentals or a change in expectations from last month, but the meeting with the possibility of a significant quarterly cut in production is related to sending a signal to the market that OPEC + members are serious about enhancing transparency and certainty and is ready to work to correct what OPEC + considers a market dysfunctional.
The head of the Rapidan Energy Group indicated that, on August 22, the Saudi Minister of Energy, Prince Abdulaziz bin Salman, issued an official notice on the website, in which he very clearly stated that this market is upset, liquidity is down, volatility is high and the pricing mechanism that the oil markets need. For inaccurate coverage, said “OPEC +” is ready to cut production to uncover these problems.
Bob McNally added, after the price of oil dropped by $ 10-11 a barrel, “and today it’s about throwing a bright side, not a warning, and proving that” OPEC + “means what it says.
The head of Rapidan Energy said that, in addition to the quarterly production cuts, “OPEC +” will announce the continuation of the cooperation indicating to the markets that “we as” OPEC + “are here and we will take measures and understand what they are saying and will work to prevent significant drops in prices in what they consider to be a disturbed market ”.
Sources in Bloomberg and Reuters had reported that the cuts to the “OPEC +” alliance could reach two million barrels a day, at today’s meeting, which is held for the first time since March 2020.
This will be the biggest reduction since early 2020, when demand dropped dramatically due to the Corona pandemic.
Interestingly, the production of “OPEC +” in August was below the quota of about 3.6 million barrels per day, due to the decline in production from Russia, Nigeria and Iran.
Oil prices recorded strong gains from the previous two sessions, with expectations that “OPEC +” will reduce production by between one million and two million barrels per day.
