Support The Moscow Times!

Head of Russia's Rosneft says U.S., not OPEC, Rules Oil Markets

The United States currently accounts for about 10 percent of global crude production, up from a low of less than 6 percent in 2008.

ST PETERSBURG — Igor Sechin, the head of Russia's top oil producer Rosneft, said on Wednesday the United States is calling the shots on global oil markets, while the influence of OPEC has shrunk.

The United States emerged with renewed vigor as a top producer thanks to its shale boom. By refusing to curb its output to prop up oil prices, OPEC has tried to maintain its share in the global market, shrugging off lower prices which damage U.S. producers.

"In essence, the sole market, which has all the sets of financial and technological tools, is the U.S. market, which has became the key regulator," Sechin told reporters, adding that oil prices in the United States set the tone of the global industry.

The United States currently accounts for about 10 percent of global crude production, up from a low of less than 6 percent in 2008.

Sechin reiterated his view that OPEC's influence over oil prices has declined.

The price of oil has halved from a peak of around $115 per barrel reached in June 2014 to around $64 today, due to supply glut. The head of Rosneft, the world's top listed oil producer by output, said the market will see more volatility in the foreseeable future.

"But long-term, in two-three years, the rising trend will set in," he said, adding that rising companies' costs will push the oil price higher.

The International Energy Agency has warned that Russia faced a "perfect storm" of lower prices, international sanctions and currency depreciation that could threaten its oil output, which hit a post-Soviet high last year.

Sign up for our free weekly newsletter

Our weekly newsletter contains a hand-picked selection of news, features, analysiss and more from The Moscow Times. You will receive it in your mailbox every Friday. Never miss the latest news from Russia. Preview
Subscribers agree to the Privacy Policy

A Message from The Moscow Times:

Dear readers,

We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."

These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.

We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.

By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.

Once
Monthly
Annual
Continue
paiment methods
Not ready to support today?
Remind me later.

Read more