Saudi Aramco, Saudi Arabia’s national oil company, has recently announced higher export prices for all if its Asian importers. Experts say that this move has to do with the fact that the Saudis are getting ready to implement the production cuts according to the Vienna Accord reached by OPEC in December 2016.
We remind you that in October 2016, OPEC as well as 11 non-OPEC nations reached an agreement designed to cut their oil production in order to avoid higher oversupply in the market of crude oil and to favor higher oil prices.
According to the mentioned agreement, which is also referred to as the Vienna Accord, the Saudis agreed to cut their oil production by as much as 486K barrels a day or 4,61% all the way down to 10,544 million barrels a day, which corresponds to October’s production level. They expect crude oil to get more and more expensive as the parties involved in the agreement implement their part of the Vienna Accord. All in all, the global oil production is expected to be cut by as much as 1,8 million barrels a day.
The Saudis are already having talks with their major oil importers in announce a 3-7% shipment cuts and higher prices starting from February 2017.
If to take a look at the price chart of Brent oil through the eyes of the SRP tool developed by the SRP (AO_Zotik and WPR_VSmark) Department of Masterforex-V Academy, the price is still developing the same ABC pattern of level Daily. There have been no signs of completion so far. The next closest targets of wave C are 59,96 and 69,69 per barrel.
