Russia’s Rosneft Dismisses OPEC as Regulator

Russia’s Rosneft Dismisses OPEC as Regulator

Head of Russia’s top oil producer Rosneft, Igor Sechin, said that Saudi Arabia, the US, and Russia were the three main players on global oil markets, dismissing again the Organisation of the Petroleum Exporting Countries’s role (OPEC) as a regulator, Reuters reported.

Stressing that OPEC has lost its power in term of its ability to regulate the global oil market, Sechin said that “the regulation has moved to three main players, which are the United States, Saudi Arabia and Russia.” He added that the three countries possess financial and technological tools and resource base to maintain their power over oil market. Sechin had previously stressed that internal differences are killing OPEC and its ability to influence the markets has all but evaporated.

Russia, as the world’s top oil and natural gas producer, has a role to play in hydrocarbon markets and its position will strengthen, Sechin told Rossiya-24 TV. Russia is pumping oil at around 10.8mb/d. It plans to at least keep production of its chief export commodity at the current level, according to The Maritime Executive.

Meanwhile, the Russian government plans to sell 19.5% of Rosneft to a strategic investor, but still no talks with any Chinese or Indian companies have been made about privatization.

As for the oil prices, Rosneft expects the oil price to be $50-$55 per barrel by the year end, rising further to $65 by the end of 2017.

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