OPEC sees the problem in the supplies outside its group
The representatives of OPEC believe that the global cut will be hard to stop if oil suppliers from across the world will continue to sell oil in enormous amounts.
Only yesterday OPEC has raised its prediction for the supplies of oil from the countries which do not belong to the group. They believe that the 2017 year will be intense for all the oil suppliers, while OPEC is trying to cut its own output.
The USA oil suppliers inspired by the increase in prices are going to double their powers. It can make all intentions of OPEC useless.
Previously OPEC named 580 000 barrels per day in their forecasts from the producers outside the group. Right now they believe that the high prices will provoke them to raise the supplies to the 950 000 barrels a day.
This means that OPEC has to cut the prediction for the yearly demand for oil as well. According to the new statement, they are cutting it by the 300 000 barrels a day.
OPEC which includes thirteen countries – oil producers successfully kept its promise and decreased the output of oil according to the agreement. They are planning to cut the supplies by 1.2 million barrels per day in six months. It is the first intentional cut for the last 8 years. Ten other oil producers and Russia agreed to support OPEC and cut the half of the asked output.
After three months market of commodities has finally seen the results. Yesterday, the prices for oil went stronger than expected. However, the problem of global glut stays at the agenda.