(Finance) – “We would like to extend the agreement with Russia and the other non-OPEC producers, it is very difficult for me to imagine that the agreement will not continue. ” general secretary OPEC, the Organization of Petroleum Exporting Countries, Haitham Al Ghais. The Kuwaiti oil executive has been in office since early August (although he was appointed for a three-year term last January), when he succeeded Mohammad Sanusi Barkindo, who passed away in early July just days after his term ended.
“This is one long-term relationship which includes broader and more comprehensive forms of communication and cooperation between 23 countries. It is not only in terms of production adjustment, “Al Ghais explained in an interview with Reuters. The reference is to OPEC +, the alliance formed by the Organization of the Petroleum Exporting Countries and its allies.
The first steps for the expansion of the cartel date back to December 2016, when difficult market conditions led to an unprecedented Declaration of Cooperation, with OPEC members and 10 non-OPEC oil producing countries joining together to help rebalance the market, lower inventory levels and support stability. In the 2019 was established Cooperation charterone long-term platform dedicated to cooperation and the exchange of views and information.
Al Ghais added that replacing Russian barrels “is not an easy task” and that less Russian production would have “serious, serious implications for consumers”.
Despite this, he said he was confident that the market will adapt: ”Whatever measures can be adopted in the future, buyers and sellers can adapt and they can always find ways and means to redirect trade flows. “
The sanctions imposed by the European Union on Russian crude oil transported by sea should be applied from December, although this could not fail to hit the country led by Vladimir Putin hard. Russia is in fact recording an increase in purchases by Asian consumers.