By IRINA OVCHINNIKOVAUpdated: OCTOBER 5, 2016 13:50 The freeze of oil output is not as hot as before the Holidays. The first enthusiasm is gone. The oil prices did not rocket above $50 per barrel. Therefore we need to keep our eyes opened until OPEC meeting in November for details. The recent OPEC recordsDuring the last crisis, OPEC grew up thanks to a new member Gabon, and Indonesia, which renewed its membership in 2015. Total OPEC production decreased to 33.24 million barrels by 24,000 barrels per day in August 2016 compared with July thanks to the drop in Libya, Nigeria, Venezuela and Ecuador. Iran and Saudi Arabia were pumping furiously. That is why September’s supply from OPEC without Indonesia and Gabon equals 32.65 million barrels per day, the highest level since 1997. The numbers are still gorgeous, the current output trembling around the all-time records.The market will swallow the glutSo a new level of output after the freeze will stop increasing of drilling activity, thus we will see results next year. OPEC decides to curb the production for the first time in eight years. The group anticipates growth of demand from Asia, so the market will swallow the glut and push the oil prices higher.Some OPEC members are very specialOPEC intends to arrange different plans for members. Iran, Libya, and Nigeria insist on some room to produce more oil. The freeze will concern the group’s daily output, so someone will drill less to support the demands of Tehran, Tripoli and Abuja to dive more oil. Daily cut of 700,000 barrels Saudi Arabia and UAE are able to manage in an enclave. Meanwhile, the individual approach always provokes quarrels and rumors. Miserable and pained OPEC members will be discovered soon.The mission is completedRiyadh is satisfied with the result of its intrigues: more than 60 companies became bankrupt and 350,000 jobs have been cut in the industry since July 2014 worldwide. The U.S. high technology shale oil industry hardly survived the crisis. Anyway, the field survived! It will flourish thanks to the freeze.Good for usWhat does the freeze mean for Israel in new 5777? Not a big deal. Nevertheless, in the perspective, Israel will benefit from higher prices of commodities thanks to forthcoming Leviathan’s gas production.
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