Even before the meeting in Doha, the Analytical Center's expert Alexander Kurdin insisted there was no point in hoping for a joint decision to reduce output, citing the rhetoric of Saudi Arabia representatives in the last days prior to the meeting. The expert also said that the attitude towards cutting back production in the Russian oil industry was far from unanimous.
Oil glut is here to stay until mid-2017 at least
“The oil glut is here to stay until mid-2017 at least,” Mr. Kurdin wrote in his column in Izvestia. “On the other hand, if there was a working agreement in place, a potential improvement in the global demand (for example, if the Chinese authorities succeed at stemming their budding economic downturn), additional problems in the oil producing sector in North America or Iran would at least be prevented from bringing about destructive competition between leading producers of the sort we have seen in recent months in some markets (including in Russia’s traditional export markets).”
It should also be remembered that in the long term there is the problem of volatile commodity prices, which figured prominently as a major global factor at every major international forum lately. It is this factor that usually gets the blame for the environmental problems, poverty and problems with sustainable development in general.
For more details, see Alexander Kurdin’s opinion piece It is Time to Calm Down the Oil Markets on the Izvestia website.