The advice comes from the International Monetary Fund to the Arab countries. According to the fund, the need is urgent due to oil’s low prices.
Oil and Gas
Such is the amount the Brazilian state-run oil company could save each year as a result of restructuring measures. Shareholders approved the plan last Thursday (28th).
The institution has revised up from USD 37 to USD 41 its projected average for the price of a barrel this year. Even so, commodity prices as a whole are seen to fall short of 2015 levels.
The Organization of Petroleum Exporting Countries asserts that ‘concern’ regarding the economies of Latin America and China is one of the reasons that led to forecasts being revised down.
The company’s production averaged at 2.65 million barrels of oil equivalent per day, which ws less than in December, due to scheduled rig maintenance shutdowns.
Brazil’s National Petroleum, Natural Gas and Biofuels Agency said importation slid 74.5% in January 2016 from January 2015.
In a concerted effort with Russia and Venezuela, the two Arab countries have pledged to keep production at January levels to prevent prices from diving further. The goal, however, is not to drive prices up.
State-owned company produced, on average, 2.6 million barrels of oil equivalent of oil and gas in Brazil, an increase of 5.5% in comparison to 2014.
The state-run oil company cut down its investment forecast through 2019 from USD 130 billion to USD 98 billion. The plummeting oil price and the US dollar hike were contributing causes.
Through a statement, the Saudi state oil company said that the measure is part of the reform process being executed by the Arab country.