World News
OPEC Has Practically Stopped Existing as a United Organisation: Sechin
The Organization of the Petroleum Exporting Countries (OPEC) no longer has the ability to influence oil prices, and has "practically stopped existing" as a united organisation.
That is the opinion of Rosneft CEO Igor Sechin, a key ally of President Vladimir Putin, who spoke to Reuters earlier this week.
As reported in these pages, in recent months Russia has been looking to co-operate with Saudi Arabia and OPEC as a whole on an oil output freeze deal in an effort to support prices, only to see it fall through, mainly due to the rift between the Kingdom and Iran.
Sechin, who was always against such a deal, said Rosneft was skeptical over the deal "from the very beginning," and the Doha talks failure effectively marks the end of an era for OPEC.
"Just to remind you, the only one question with which we responded to those who were interested to know our position: 'Who should we agree with, and how?' The development of the situation has clearly shown we were right," he said.
"At the moment a number of objective factors exclude the possibility for any cartels to dictate their will to the market. ... As for OPEC, it has practically stopped existing as a united organization."
Sechin's view that OPEC has reached a major turning point was underlined last weekend when Ali bin Ibrahim Al-Naimi, Saudi Arabia's oil minister for over 20 years and the so-called most powerful man in oil, on Saturday was removed from his position by a royal decree and replaced by Khalid al-Falih, chairman of Saudi Aramco.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 556.50 | 9.00 | 685.00 | 6.50 |
| Rotterdam | 506.00 | 6.00 | 665.00 | 11.00 |
| Houston | 552.50 | 0.50 | 682.00 | 4.00 |
| Fujairah | 548.00 | 7.50 | 750.00 | 3.00 |
| Global 20 Ports Average | 583.50 | 4.00 | 762.50 | 2.50 |
| Global 4 Ports Average | 546.50 | 4.50 | 697.50 | 2.50 |
| Global Average Bunker Price | 632.50 | 2.00 | 811.00 | 1.50 |
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