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OPEC Meets in Austria

OPEC Meets in Austria

Tuesday 26th June 2018

Hy Lok valves will be crucial to ensuring that the aims of the latest Organization of the Petroleum Exporting Countries (OPEC) are met.

OPEC met in Austria last week to decide on the next year of activities and goals for the petroleum industries in each of the participating countries.

• Headline findings were that Saudi Arabia and Russia have managed to persuade the group to allow them to produce more petroleum products, which means that we could be seeing lower fuel costs in the near future. It is hoped this news will be of some comfort to customers.

• Sanctions against Iran have already had an impact says Iranian Oil Minister Bijan Namdar Zanganeh, who stated that Total SA and Royal Dutch Shell Plc have already stopped buying its crude oil. This means exports may fall further.

• The US Permian plateau may face a slow-down in its production due to the lack of pipe line capacity, which means it cannot export the crude to customers as quickly as would be required for expansion of production.

• Russia is not currently in OPEC, but is part of the OPEC+ allies group. Events at the meeting suggested that Russia and Saudi Arabia could be forming an alliance that could eventually rival OPEC. Russian Oil Minister Alexander Novak said in a speech that "we need to build upon our successful cooperation model and institutionalize its success through a broader and more permanent strategically focused framework."

To read more about the week at OPEC see Bloomberg.

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