Rapidan Energy Group President Bob McNally said: OPEC + meeting Today, Wednesday, is “really important”, followed by a press conference not only 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 the weakness of fundamentals or a change in expectations since last month, but the meeting with the possibility of a significant quarterly production cut is related to sending a signal to the market that members of OPEC+ is serious about enforcing transparency and certainty, and is ready to work to fix what OPEC+ considers a dysfunctional market.
The head of the Rapidan Energy Group indicated that, on August 22, Saudi Energy Minister Prince Abdulaziz bin Salman issued an official warning on the website, in which he stated very clearly that this market is disrupted, liquidity is declining, volatility is high, and the price-setting mechanism that oil markets need. For an inaccurate hedge, he said that “OPEC +” is ready to reduce production to find out about these problems.
Bob McNally added, after that, oil prices fell by 10-11 dollars a barrel, “and today it is about launching a positive side, not warnings 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 cooperation while indicating to the markets that “we as “OPEC +” are here and we will take measures and understand what we are saying and we will work to prevent significant declines in prices in what they consider a disrupted market.” .
Sources from Bloomberg and Archyde.com had reported that the “OPEC +” alliance’s cuts may reach two million barrels per day, at today’s meeting, which is being held in attendance for the first time since March 2020.
This will be the largest reduction since the beginning of 2020, when demand fell sharply due to the Corona pandemic.
It is noteworthy that the production of “OPEC +” in August was less than the quota by about 3.6 million barrels per day, due to the decline in the production of Russia, Nigeria and Iran.
Oil prices recorded strong gains over the previous two sessions, with expectations that “OPEC +” will reduce production by between one million and two million barrels per day.