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Monday, October 24, 2016

Sechin said about the death of OPEC

The head of “Rosneft” Igor Sechin in an interview with Reuters stated that OPEC (Organization of countries-exporters of oil) as a cartel capable of influencing global oil prices, no longer exists.

photo: morguefile.com

According to him, the conditions of the 1970-ies, when enterprises cartel, similar to OPEC, could dictate terms to the oil market, finally gone, now to do this, no “objective conditions”, and OPEC has ceased to exist as a single organization.

Sechin has stated a similar position, noting in particular that Russia does not make sense to join OPEC, as domestic oil market almost completely privatized.

Earlier today the head of the state oil Corporation of Saudi Arabia Saudi Aramco Nasser Amin said that the country will increase oil production, as exporting countries in April failed to agree on the limitation of quotas. This decision, recall, has led Iran’s position, trying to recapture market share after the lifting of sanctions.

Thus, the increase of production by Saudi Arabia could result in another price reduction of fuel in an attempt to maintain a competitive advantage over other exporters.

At the same time Russia is also ramping up production: a proposal to freeze the quota at the level of January 2016, which was discussed by the oil exporters, meant that the Russian Federation will hold production at a maximum level, as in January, just a record was achieved for this indicator.

Note that the former oil Minister of Saudi Arabia Ali al-Naimi was shot by the king of the country from the post in April after unsuccessful negotiations.

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