Russia is not discussing more with the club of oil producers-OPEC coordination. This was announced by energy Minister Alexander Novak, reports Reuters.
According to him, it happened after the spring of this year the countries-oil exporters are unable to agree on freezing the level of oil production. Novak noted that during the meeting with OPEC, the parties can exchange views on the current situation on the market.
“We do not discuss questions of coordination between Russia and OPEC, no such purpose. This issue was raised only last year when some of the OPEC members made a proposal to reduce output in the world,” said Novak in an interview in Moscow.
It is noted that the drop in oil prices in the end of 2015 pushed the largest oil-producing countries to the negotiations on the freezing of the level of oil production at Jan. However, the talks between OPEC members and other oil-producing countries, including Russia, ended in failure, as Saudi Arabia refused the deal. “Now we live in a market environment, each pursuing its policy, there are no restrictions,” — said Novak.
In this regard, according to estimates by Nowak, global oil market supply exceeds demand by about 1 million barrels a day, and the balance can be achieved by the end of 2017.
Novak expects that the demand for oil will grow at least 0.8-1.0 percent per year, or 0.7-1.0 million barrels per day. He added that according to his estimates, stockpiles currently represent about 3 billion barrels of oil, of which a surplus of approximately 500 million barrels. “It is quite large reserves, which will long leave the market”, — he said.
The growth of oil reserves in the vaults continued in June, reaching a maximum for 7 years. This was announced by the International energy Agency, which coordinates energy policies of industrialized countries. The Agency noted that this fact will curb the recovery in oil prices for a long time.
The Ministry of energy still predicts that prices this year will be $40 and $50 per barrel. However in Department do not exclude that the price may be lower due to the seasonal drop in demand. “In the winter demand falls, production will be maintained, and this may affect prices,” — said the Minister of energy.
Novak notes that the second half would be a decrease in demand due to seasonal factors. “The second half can be much more complicated: the demand will be lower, additionally, you can return the volume of production, which left the market in the last two or three months, and the proposal may again exceed demand. Thus, the market remains oversupplied, there is a possibility of the occurrence of any other “black swans”, this year there was a lot,” he said.
