Organisation Of The Petroleum Exporting Countries (OPEC) have gained Russia's willingness to join them as an observer.
OPEC claim Russia's Liquid Hydrocarbon production will decrease from 10.57 million barrels (2014) to 10.5 million barrels each day during (2015).
- Well duh. People may point their finger at Opec's poor decisions or at Saudi Arabia's or even both, but due to them as a whole Russia's economy is effected - are Opec in any place to make such a statement after being the reason for it?
June 2014, was when oil prices world-wide dropped by around 50% because of oversupply as well as Saudi Arabia's capitalisation on oil prices by decreasing their oil prices which only dug a deeper hole for the price of oil t
o drop - let us not forget, there was a poor or intentional decision by OPEC which was to maintain oil output level rather then cut them which was enough to refill the hole with soil and slump the oil price.
Food for thought, maybe OPEC, Saudi Arabia and those who enforced sanctions are hand in hand intending to undermine the long-term supply of oil in Russia?
Statements made by Igor Sechnin '10/2/15' (Oil Rosneft CEO) -
"Russia is willing to join the Organization of the Petroleum Exporting Countries (OPEC) as an observer despite the cartel's wish to see it as a full member."
"We are ready to join OPEC as observers."
"We respect this organization, it would like to see us among its members. However, we cannot join OPEC on account of specifics in Russian oil production."
"Sanctions against Russia, for example, are aimed at undermining the long-term supply in the oil market and cause the widening Brent-WTI differential to the detriment of European refinement."
- What can be obtained from these statements is that Russia are willing and ready to join OPEC as observers, joining will effect Russian oil production and that Russia are aware that Sanctions on them are to puncture their long-term supply of oil.
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