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VIENNA, Nov 30: Opec Secretary General Ali Rodriguez warned on Friday of an “unimaginable” collapse in oil prices next year if non-Opec rival producers do not agree to cut output in tandem with the cartel.
“The problem we are all facing is the uncertainty surrounding the global recession. No-one can accurately gauge when the economic will recover, and to what extent,” he told the OpecNA news agency.
“Failure to act now could result in an unimaginable price crash in the second quarter of next year,” when oil demand traditionally falls as winter ends in the northern hemisphere, OpecNA cited him as saying.
Rodriguez said Opec had to be prepared for the current slowdown at least continuing, which means making decisions now for next year, when getting the supply and demand balance right will be vital for the market’s welfare.
“It is in the interests of all players to pull in the same direction, whether they are producers or consumers,” he said. “When oil prices fall, we all suffer. It is a common problem that requires a common solution.”
“Our members are ready and willing to make their contribution to help secure a fair and stable market.
“Together with our non-Opec colleagues, we can form a solid bridge that will bring us the results we will all benefit from.”
RUSSIAN ENERGY POLICY: Russian energy policy must be free of influence from Opec and consider national interests and those of its customers, Prime Minister Mikhail Kasyanov said on Friday.
“We are not members of Opec and do not expect to be influenced” by its decisions, he told the lower house of parliament, the Duma, in a reference to the Organization of Petroleum Exporting Countries.
“Our energy policy is defined taking into account our national interests, our strategic needs and our position in the rest of the world,” Kasyanov said.
“Nearly all the leaders of countries which are our customers agree with us that a barrel of oil should be in a range of $20 to 25,” he said.—AFP
