It is a good day for OPEC.
The data published by Monday by Cartel oil shows its members to a large extent for an agreement to reduce production.
The confirmation of a wonderful year for OPEC, which forced a plan to boost prices after declining to $ 26 a barrel in February 2016.
The collapse of the price was – to the levels that have not been seen since 2003 – due to the months of increased supply, the slow demand from China and the decision of Western powers to lift Iranian nuclear sanctions.
Since then, the market has installed an amazing transformation, while doubling crude prices to trade at $ 53.50 a barrel.
Here is how the main oil producers work together to pay prices up:
OPEC deal
OPEC has agreed to the main reductions of production in November, hoping to tame the increase of oil supply and support for support prices.
The news of the deal immediately strengthened the prices by 9 %.
Investors chanted more after many other OPEC producers, including Russia, Mexico and Kazakhstan, joined the efforts made to curb supply.
Decally, hold the deal. On Monday, the OPEC report showed that its members – most of the time – have made their pledges to cut off its production. The International Energy Agency: OPEC estimated to comply with January 90 %.
On Monday, the Minister of Energy of the United Arab Emirates told CNNMoney on Monday that the results were better than what was expected.
Production reduces 1.8 million barrels per day and is scheduled to work for six months.
Related: OPEC pulled one of its “deeper” production cuts
Investors are optimistic
The OPEC deal took months to negotiate, and the investors really admire. The number of hedge funds and other institutional investors who are betting on the high prices reached a record in January, according to OPEC.
Wonderful optimism helps increase fuel prices.
High demand
The latest data from OPEC and IEA shows that global oil demand was higher than expected in 2016, thanks to the strongest economic growth and high and cold vehicle sales of the expected weather in the last quarter of the year.
The demand is scheduled to grow in 2017 with an average of 95.8 million barrels per day, comparing 94.6 million barrels per day in 2016.
IEA said that if OPEC adheres to its approval, the global oil abundance that afflicted the markets for three years will finally disappear in 2017.
Saudi Oil Minister: I do not lose sleep on oil rock
What next?
Despite the amazing growth, analysts warn that prices may not rise much.
This is because the high oil prices are likely to attract American rock producers to the market. The total number of active oil platforms in the United States reached 591 last week, according to Baker Hughes data. This is 152 more than a year ago.
American crude stocks swelled in January to nearly 200 million barrels above an average of five years, according to the OPEC report.
“This wide increase in stocks is the result of a strong response to the display of American rock producers, who did not participate in the OPEC agreement and who instead used the resulting price to increase production,” said Fiona Cinnokota, an analyst at the city index.
It can put more width again OPEC under pressure.
CNNMoney (London) It was first published on February 13, 2017: 9:13 AM Et