Since January 2020, OPEC has 13 member countries: five in the Middle East (Western Asia), seven in Africa and one in South America. According to the U.S. Energy Information Administration (EIA), OPEC`s combined oil production (including gas condensate) accounted for 44% of the world total in 2016 and OPEC accounted for 81.5% of the world`s “proven” oil reserves. Do I read the graph that allows you to use it correctly since quotas and production are displayed before the end of November 2007? In March 2020, Saudi Arabia, an initial member of OPEC, the world`s largest exporter and highly influential force in the global oil market, and Russia, the second-largest exporter and probably the second largest OPEC player, failed to agree on a production cut to stabilize oil prices. Professor, thank you very much for that. I was interested in your takeover of Saudi oil production, given your position on Ghawar. One of the reasons that rising oil prices have not slowed consumption as in the past is that inflation is higher. Look at the 70 USD/bbl oil with gold at 35 USD v 70 USD/bbl Oil with gold at 700 USD. It is difficult to establish a close link between Venezuela`s ceiling and its actual production.
The same goes for other OPEC members. Some produce much more, others much less than their so-called quotas. Previous agreements reached in October and December last year recognized this state of confusion, with OPEC apparently accepting a “reduction” in production quotas at these meetings (shown in the last two yellow columns of the tables above) without formalizing the level of these reductions. It`s true. The graph shows the values up to 2007 simply in the form of a 4-month projection. The quota will increase by 0.5 mbpd in November and December. Production is projected as the July level for August, September and October and increased by 0.5 mbpd in November and December. The actual August level will be available in 10 days at the IEA. I doubt that the actual figures for September and October are very different. It is questionable whether or not the 500,000 bpd increase will take place at the end of the year.
I hope OPEC updates the pdf you use for current country levels. Given that OPEC seems to be doing everything under established conditions, derived from individual countries? In my opinion, the increase of 0.5 mbpd would only be a reversal of the February reduction on an individual basis. Saudi Arabia`s rate still seems to be about 32.5% of the total. This corresponds to 158,000 bpd. In December 2017, Russia and OPEC agreed to extend production cuts by 1.8 million barrels per day until the end of 2018.   Other proposals include the introduction of simultaneous negotiations for a range of raw materials. However, these discussions, including the management of the resulting multi-commodity agreement, would be very complex. It can also be said that the importance of export instability has been exaggerated and that most of the economies concerned have not suffered any serious harm.