Excellent result of OPEC+

 Excellent result of OPEC+

OPEC Secretary General Mohammad Barkindo evaluates the results of the deal of OPEC and non-cartel oil producers to cut oil output as excellent. "Both OPEC and non-cartel countries, in spite of all difficulties, in general, remain committed to our agreement," he said in an interview with RBC.

OPEC Secretary General also hopes that the dialogue between the cartel countries and the US shale oil producers, which has been launched last year, will continue. "I must say that I was surprised by the warmth with which they took this initiative. They even urged us to continue this dialogue," Barkindo said.

Commenting on the prospects for cooperation, he said that the cartel plans to continue the dialogue with shale producers in the fourth quarter of this year, and expand cooperation with those US companies that had not previously contacted OPEC.

According to the organization's secretary general, they also cannot but notice the additional volumes of shale oil put on the market in the first half of this year by US producers.

In addition, Barkindo said about their work with Russia. "We have come a long way with Russia. Now we are working together on the stability of the world oil market," the OPEC secretary-general said.

Speaking about the OPEC output this year, Barkindo said that the organization expects zero growth. "It is a direct threat to the future oil supply for us," the Secretary General admitted.

"According to the forecast for production in non-OPEC countries, including the US, output will grow. And it is one of the main problems that had a negative impact on the market," he added.

A leading analyst of the National Energy Security Fund, a lecturer at the Financial University under the Government of the Russian Federation, Igor Yushkov told a correspondent of Vestnik Kavkaza that OPEC Secretary General, speaking of the successful implementation of the deal, is trying to create a positive information background, which, in turn, will have a favorable impact on oil prices.

"If they say to traders that there are problems, then they will start selling futures, and this will lead to the decline in prices. Therefore, all participants of the agreement are trying to create a favorable background. The market is largely dependent on some news background," the expert explained.

At the same time, he was skeptical about the possible cooperation of the OPEC and US oil producers. "I think that Barkindo's statement was an attempt to pressure the market and show that the Americans do not torpedo this initiative. In fact, when the parties agreed to cut production and prices increased, the US shale companies took advantage of it, increasing their production," the analyst recalled.

In his opinion, the Americans will not agree to join the agreement, because the US government will not interfere in production. "There are thousands of oil companies in the US, they cannot be forced to produce certain volumes of oil," the lecturer at the Financial University under the Government of the Russian Federation believes.


Vestnik Kavkaza

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