The organization of countries — exporters of oil (OPEC) has lost economic power due to the inability to agree on how to stop the crisis in the oil market, said Deputy Chairman of industry consultants IHS Daniel Yergin, nicknamed the “energy guru”, in interview to the newspaper Financial Times. According to him, the disagreement among the OPEC members show the weakness of the organization.
“The era of OPEC as a decisive force in the global economy,” said Yergin.
According to him, the crisis in the oil market showed inability of OPEC to act as a United front. Yergin expressed doubt that the oil may be frozen until such time as Iran does not decide what amounts he will be able to export.
In an interview with Yergin also noted that the market has faced the worst in his memory by the collapse in the price of oil, which can be compared with the fall in prices in the mid 1980-ies. At the same time, he expects that after reaching a days the market will start to be balanced. Storage is largely filled, but the bottom is, when to store oil there is nowhere that is not reached yet, said the source FT. “Or in the second half of this year or early next year you will see the market more balanced,” he said.
FT Yergin calls the unofficial historian of the oil industry. In 1990 he published the book “Mining: world history fight for oil, money and power,” for which he received the Pulitzer prize. In this work, Yergin described the history of the global oil industry since the mid-nineteenth century. in the book, among other things, tells how created in 1960, OPEC has influenced oil prices, decreasing and increasing the volume of deliveries.
In Qatar on April 17 are due to meet major oil exporters, which will discuss the agreement on freezing production at the level of January 2016. The initiators of the deal were Russia, Venezuela, Qatar and Saudi Arabia. At the same time, the Deputy crown Prince and defense Minister of Saudi Arabia Mohammed bin Salman April 1, stressed that the country will join the agreement only in the case if Iran agrees to freeze oil production. In turn Iran, which in March increased its exports of oil and gas condensate to over 2 million barrels a day, has not confirmed its participation in the meeting in Qatar.