OPEC decided to reduce oil production

Ministers of member countries of OPEC at a meeting in Vienna, which ended on the night of 10 September, decided to more strictly adhere to previously established quotas for oil production, which would mean reducing the real level of its production by about 500 000 barrels per day.

The decision to change OPEC production was a surprise: Against this backdrop futures price of oil on the New York Mercantile Exchange on Wednesday took off at 1.4% - up to 104.67 dollars per barrel, the agency Bloomberg. Before the session of OPEC prices, in contrast, declined.

The countries-members of the organization, referring to the excess of supply over demand of oil on the world market, decided to strictly adhere to the level of mining in 28.8 million barrels per day, said the communiqu adopted. It is at 520 000 below the real production and corresponds to the July 1% of total world production of raw materials.

The new quota takes into account the suspension of membership in OPEC Indonesia, the share which stood at 865 000 barrels per day. Entering the new quotas will happen within 40 days.

Iran and Venezuela expressed at the meeting to take action to support prices, which fell on July compared with a record level of more than 30%. In their view, there is oversupply in the market. This time, their position is, apparently, found support from other countries, including the largest oil producer - Saudi Arabia, reported Interfax.

"Everything that is happening shear said sentiment on the market, posing a risk of deterioration in the forecast for world oil market," - OPEC statement said.

Demand for oil fell substantially this year in the U.S. and Europe. There are also signs of slowing demand growth in China.

The Wall Street Journal writes that all members of organizations believe and intend to maintain an acceptable level of prices around 100 dollars per barrel.

OPEC announcement was a surprise to many because in anticipation of the ministerial meeting of the majority of producer countries, especially representatives of Saudi Arabia, described the world oil market as "balanced" and "healthy".

However, the OPEC president said Shakib Helen on September 10 that world oil prices, despite the decision to reduce production organization can continue to decline. "There is overproduction, and all agree with that," - he said.

The share of countries belonging to the organization, accounts for about 40% of world oil supplies.

In recent months, OPEC increased production, much of this growth went to Saudi Arabia, which in June and July, raised production by 500 thousand barrels a day.