Golden Age of OPEC Has Passed


SINGAPORE, Sept 7 (Reuters) - The Golden Age of OPEC countries to keep oil markets balanced passed when the group decided not to cut production in November last year to end a price rout, the chief executive of Russian oil major Rosneft said.

"The Golden Age of this organization has passed," Igor Sechin said during the Financial Times' Commodities Retreat in Singapore on Monday.

"If quotas [for production] had been observed, global oil markets would have been rebalanced by now," he added, referring to OPEC's decision in November 2014 to keep production near record highs in defence of market share over prices.

Oil prices have fallen to below $50 per barrel since June 2014 as record global output has started to outweigh consumption. Sechin said an average oil price of $70 dollar per barrel was needed to rebalance global oil markets.

(Reporting by Henning Gloystein; Editing by Richard Pullin)

Copyright 2016 Thomson Reuters. Click for Restrictions.


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JL | Sep. 8, 2015
If its passed, then why do all these traders still hang on every word that comes from the lips of some Saudi oil minister? The SECOND a peep comes out about having a meeting, they print story after story and attempt to push up the price of oil with hype that they MIGHT be cutting their output!. Ridiculous....

Charles | Sep. 7, 2015
Actually once the new fracking technology goes global we will see oil really go down. Oil will be easy to obtain in a lot of areas that have little or no production. This will eliminate OPEC.

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