There is no trust in OPEC any more

21 april 2016 | Russia - 24

“There can be no trust in OPEC any more, if you go by the policy they have been pursuing recently,” said Alexander Kurdin, the Head of the Department for Strategic Studies in Energy of the Analytical Center in the Geo-Economics show on Russia-24.

Alexander Kurdin
Alexander Kurdin
Department for Fuel and Energy Sector

 “OPEC has its quotes but OPEC members, as we saw in past years, were not really adhering to them too stringently and eventually undermined global oil prices,” Mr. Kurdin said.

In the past 8 years OPEC has not really made any consolidated policy decisions while OPEC’s oil production quotas were often exceeded. Experts are sure that if everyone had been playing by the same rules, there would now be a shortage rather than a glut of oil and the prices would be much higher.

Experts also point out that the meeting in Doha may have a positive effect on the situation yet. It was the first time that representatives of that many influential oil producing countries had a meeting at this level, plus this time they are really willing to talk to each other. It remains to be seen if any good is going to come out of it after the next stage of negotiations in Vienna.

Source: Russia-24