Saudi Arabia, Russia, Qatar, Venezuela agreed to "freeze" the production of oil up to the January levels. However, economists believe that this decision will not change much - on materials AMarkets.
The experts at Capital Economics the following arguments in support of his opinion:
1. Oil production in those regions and no agreement has been reached should not grow much.
2. The agreement is not a word about Iraq and Iran. Economists at Barclays argue that the agreement between the countries of the compression production - fiction. Countries and so little going to cut production. For example - in January, daily production of oil amounted to 655 barrels of Qatar. In 2011, the average daily production rate fluctuated around the mark of 800 barrels. Average value of last year - 668. That is, Qatar has consistently squeezed volumes. Venezuela is forced to reduce the volume in 2016. The country will need to import raw materials to mix it with crude oil, which the country is exported.
At current rates and the budget, the economy will have to tighten the import of components required.Accordingly, exports also naturally decrease. But Iran and Iraq, who do not participate in the agreement, on the other hand, can increase production. It is expected that by March 20, Iranian exports will amount to 1.5 million barrels a day. Iraq, too, it seems, has no plans to cut production. The January issue of raw materials amounted to 4.38 million barrels a day - it's almost a historical record for Iraq. The bottom line - nothing will change. That something has changed to the agreement must join more important players. In particular, Saudi Arabia.