On July 30, the Analytical Center hosted the 4th meeting of the OPEC-Russia Energy Dialogue. The parties shared their views on how the situation in the global oil market is going to evolve in the short, medium and long term. The sharing of opinions within the framework of the Energy Dialogue carries special significance for the industry because both Russia and OPEC nations play an important role in the global oil balance shaping.
Opening the meeting the Russian Minister for Energy Aleksander Novak noted that judging by the increase in the amount of contacts between the parties the dialog between Russia and the OPEC has been expanding.
“Today’s meeting is devoted to the prospects of the global petrochemical industry and development of taxation in Russia’s oil sector,” the minister said. ‘It is extremely important that we appreciate the current trends in the global petrochemical industry and share our views on what’s happening there. As the global energy balance is shifting, which, among other things, includes an increase in the share of natural gas in total energy consumption and accelerating technological progress, the petrochemical industry’s role as a principal consumer of oil becomes ever more important as increasingly it is becoming the main driver of demand for oil.”
The global oil market is influenced by a broad array of political factors. For example, the minister believes that the recent agreement reached between Iran and the 6 international negotiators and the agreed lifting of sanctions from Iran are going to have an impact on the market. “For this reason, Russia and OPEC nations, as responsible players in the global oil market, must pursue a policy based on comprehensive and adequate understanding of the market’s key factors and characteristics. We have common goals here and the main goal is to ensure balance and stability in the market,” Mr. Novak added.
“We have all been hit by the instability and price volatility in the market that we have been seeing over the past several quarters,” the OPEC general secretary Abdalla el-Badri said in his response. He said the current situation was a test for both producers and investors, noting that the cartel expects the market to stabilize in the long term. “As we have common interests we will be able to get mutual benefit from today’s discussion,” he concluded.