No one to help OPEC

It is not worth expecting coordination between countries outside of OPEC in order to stabilize the oil market, a senior analyst for the oil and gas sector in the Uralsib Capital company Alexei Kokin said.

In particular, such countries as Russia, Azerbaijan, Kazakhstan have been the major producers and exporters of oil for a long time, but still no examples of such coordination existed until today, Kokin told Trend.

“This is due to the fact that the countries, in any case, Russia, are not willing to voluntarily reduce their production,” said Kokin. In case of Russia, the reduction of oil production will be linked with serious costs.

“Russia does not have a flexible attitude in this issue, and it’s not the case of policy, but of peculiarities of oil production in the country,” said Kokin. “In particular, the matter rests in a low production rate of wells given their big funds. Decline in production is linked with high costs for return to the previous flow rate, according to geological reasons.

The countries outside the cartel will increase oil supplies by 0.68 million barrels in 2015 to 57.16 million barrels per day, according to OPEC forecasts.

It was previously reported by foreign media that the OPEC and representatives of countries outside the cartel, in particular, Azerbaijan, Russia, Brazil and Mexico failed to agree on joint oil production decline at the meeting held in May.

OPEC will hold a regular meeting June 5 in Vienna, at which it will discuss the current state of the oil market and decide on oil production quotas.

SOURCE: Azer News