OPEC and OPEC + countries are concerned about the actions of the United States in respect of a number of oil-producing states

Baku / 17.03.19 / Turan: For the first time in the history of Azerbaijan, Baku has launched a ministerial meeting of the Joint Monitoring Committee of the Organization of Petroleum Exporting Countries (OPEC) and the so-called countries of the OPEC + group (oil-producing states that are not part of the Cartel). On the eve of this meeting, the key ministers of OPEC and OPEC + held a press conference at which they condemned the actions of the United States with respect to a number of oil-producing states that could have negative consequences for the whole world, and also announced plans for production in the coming months and the need to continue coordinating efforts to maintain the situation in the global oil market.

The tone at the press conference was set by the Minister of Energy, Industry and Mineral Resources of Saudi Arabia, Khalid Al-Falih and the Minister of Energy of the Russian Federation, Alexander Novak.

Saudi Arabia (OPEC leader), the United States and the Russian Federation (not OPEC members) are currently the largest oil producers in the world, "overboard" in connection with the US sanctions were Venezuela (the largest oil reserves in the world) and Iran (included in TOP-3 OPEC oil producers).

"Despite the decline in oil production in Iran and Venezuela due to US sanctions, there are enough world oil reserves and their production is regulated to keep world oil prices at an optimal, stable level ... However, if the United States introduces new sanctions against the Russian Federation, they will affect the whole world. Russia is a big supplier of gas to Europe, oil to China and India. If this happens (regular sanctions), then it will affect Europe, Asia and the whole world," said Al-Fatih.

According to him, Saudi Arabia positively assesses the cooperation with Russia, countries are taking the right joint steps to stabilize the market, "sitting at one round table and with other oil producers, discussing how to stabilize the global oil market."

In February, senators submitted a bill to the US Congress on new sanctions against Russia. In particular, they envisage sanctions against individuals investing in Russian liquefied natural gas export projects located outside the country, as well as with respect to investments in energy projects outside Russia that cost more than $ 250 million and are supported by state-owned companies. Restrictions may concern service providers, equipment and technologies in the Russian Federation, as well as organizations providing funding to Russia.

Also, the US is ready to apply sanctions against OPEC countries for the so-called intervention in price regulation of oil prices (NOPEC Act, discussed by the US Congress).

"The actions of OPEC and OPEC + are aimed at maintaining energy security in the world, protecting all oil producers. I think that the US also needs similar stability on the world oil market, so that it is more predictable, and there would be a possibility of rapid price regulation," says Saudi the minister

According to the head of the Ministry of Energy of the Russian Federation, "US sanctions are very negative."

"They completely distort the market of hydrocarbons, the balance of supply and demand. They are illegal. Because they are taken unilaterally, without the approval of the UN countries. The US actions cause confusion in the adoption of long-term planning of the work of the largest companies. The purpose of the American sanctions is to promote their own products in world markets, but this leads to high volatility (unpredictability) of the development of these markets. For example, the US sanctions against Iran adopted in November 2018 for several days collapsed world oil prices by $ 20 barrel. Now US actions lead to such a situation that we do not know what will happen to prices in April, and in general, it is difficult to achieve stability in this issue in 2019, "A. Novak said at a press conference.

It should be noted that Novak, who had not missed a single meeting of the monitoring committee in the entire history of the OPEC + transaction, for the past 2 years, will not participate in the corresponding (13th) meeting (in Baku) on March 18.

"Unfortunately, I will not be able to attend tomorrow. The Deputy Minister of Energy Pavel Sorokin will represent the interests of the Russian Federation. But I managed to hold meetings in Baku with my colleagues from Saudi Arabia (lasted 3 hours), Azerbaijan and Iraq, and familiarized myself with the work of the OPEC technical committee +, who analyzed the current situation on the oil market ", A. Novak told journalists.

According to ASTNA, the head of the Russian Ministry of Energy will leave tomorrow morning Baku for the Crimea to open one of the Russian energy facilities.

Despite the difficult situation, compliance with the agreement with OPEC + in March will be "above 100 percent", Al-Falih said at a press conference

"We will continue to set an example for other oil-producing countries and do what we should," he said. According to him, Saudi Arabia is reducing oil production by 0.1 million bar / day - up to 9.7 million b / d, and will maintain oil exports at 7 million b/d. As for the Russian Federation, Russia fulfills its obligations, said A. Novak.

"Last December, the Russian Federation, joining the agreement on the reduction of production, announced the implementation of quotas for several months. Two years ago in December, we also made such a commitment. We are now performing a deal even better than last time. We will fulfill our obligations by the end of March and the beginning of April, that is, even earlier by a month. That is, we will reduce oil production by 228 thousand bar/day as compared to October 2018," the Minister of Energy of the Russian Federation noted. In his opinion, the decision on the future fate of the OPEC + transaction should be expected in May-June 2019.

According to OPEC Secretary General Mohammed Barkindo, "the investments necessary to ensure stability in the global oil industry are returning after a recession, but the pace is still slow." "The leading oil producing countries of the world have achieved significant success in terms of cooperation and efforts aimed at avoiding an imbalance between supply and demand on the world oil market," he said. According to estimates by the Ministry of Energy of the Russian Federation, in the second and third quarters of 2019, oil demand is expected to increase in the world, and this situation should be constantly monitored. "At present, a Charter on Cooperation between OPEC and OPEC + is being prepared, which can be submitted to the 14th ministerial meeting. I am confident that the instrument of interaction between OPEC and non-Cartel countries has a positive effect on the world oil market," A. Novak. Azerbaijan has the same point of view, which has been actively participating in OPEC meetings for the fourth year. -0-