OPEC gave way to tie – their first in almost 10 years. Today the new Secretary General of the Organization of countries-exporters of oil will be the Nigerian Mohammed Barkindo.
Recently once one of the most powerful organizations in the world began to lose their positions and were only internal conflicts, in any case, this opinion is shared by many experts. In particular, the head of “Rosneft” Igor Sechin said that OPEC has virtually ceased to exist as a unified organization.
Whether Barkindo to change the situation and return to OPEC control of the oil market, time will tell, but we can definitely say that hopes for such change lay many.
It is obvious that Mr. Barkindo comes to your position during a difficult time for OPEC. His main task will be building relationships with key members of the cartel, particularly Saudi Arabia and its allies in the Persian Gulf. In addition, he will gain the trust of Iran, Iraq and Venezuela.
Members of OPEC
Members of OPEC are Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, United Arab Emirates, Venezuela and Indonesia.
Of the impending death of the oil cartel has long been warned by many experts, however, according to former chief economist at NGP Energy Capital Management ANAS Alhaji, OPEC has long been dead.
In his article on Project Syndicate ANAS Alhaji writes that the death of the oil cartel to blame for his key player – Saudi Arabia. The organization of countries-exporters of oil, OPEC is dead. She was killed in Saudi Arabia. Now OPEC is just a toothless zombie: it attracts attention, but does not have to life any influence.
Few noticed the demise of OPEC, and for a simple reason: the organization is never in reality had that effect, which is usually attributed. She was never the real cartel with monopolistic market power. Anyone who thinks otherwise erroneously attributed to her market power of Saudi Arabia.
And the market power of Saudi Arabia big. This country remains the dominant producer in the global oil markets, its political and economic decisions depend on the entire global energy economy. And this influence will only increase if the Kingdom will be able to turn the Arab Light oil in the new global benchmark grade of crude oil.
The countries-participants of the cartel for two years been unable to agree on the strategy and conduct mining without any restrictions, although different countries have several times offered to introduce quotas and abide by them. Even in the spring there was a meeting in the broader format with the participation of Russia and other major oil – producing countries- but it ended in failure and again at fault for Saudi Arabia.
Well, on Friday there is recent data that point to another record in OPEC.
So, according to the Reuters survey of OPEC countries increased to 33.41 million barrels a day. Increased production was achieved primarily due to the return of part of Indonesia and the accession of Gabon. However, other members of the cartel increased production to its highest level since 1997, when Reuters first conducted a similar study.
