Major oil makers fight US President Trump, who increased production quotas to lower prices • Russian Energy Minister: "Cut production by half a billion barrels"

• Oil rigs in the Persian Gulf // Photo: Reuters

מל The war of major oil producers in the world is continuing to decline in oil prices. According to Reuters and other media outlets, OPEC states are expected to announce a cut of half a million barrels per day, following a cut of 1.2 million barrels from the beginning of the year.

The final decision will be made today at a summit meeting to be held in Vienna between 14 members of the Oil Producers Association and Russia. "We have come to the conclusion that in order to reach balance, we need to cut global production by about half a billion barrels by the first trimester of 2020," said Russian Energy Minister Alexander Novak.

The Russian minister's statements were also joined by the Iraqi oil minister, who proposed to cut 400,000 barrels, as well as Saudi Arabia, which is outraged that it continues to cut while other countries increase supply. These statements contradict the earlier estimates by OPEC officials that the cut in oil barrels should only be made in half and even at the end of 2020.

The organization's companies produce at least 40% of the world's oil

OPEC aims to be a cartel, and the organization consists of the following countries: Algeria, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, UAE, Venezuela, Angola, Ecuador, Gabon, Equatorial Guinea and Congo. At least the OPEC countries are responsible To 40% of world oil production. The meeting between oil makers is taking place against the backdrop of a 4% rise in the past day, and today the price of oil exceeds $ 63 a barrel - slightly more than its cost at the end of 2018.

OPEC fears that if they do not immediately cut oil stocks in the first half of 2020, the market will soon be flooded with one million unnecessary barrels a day - a scenario that would crush the price of oil below $ 40, about 30% less than its current price.

OPEC states fear that U.S. oil production through oil shale will diminish their profits. This week, US oil stocks fell sharply, by 4.9 million barrels in the last week of November, up from three times their previous expectations. A new record with 12 million barrels a day.

According to forecasts, in the next five years, the United States will increase oil production to 20 million a day. Currently, Americans still import 9 million barrels per day, but their dependence on foreign oil is diminishing, until it is probably gone.