Sechin announced the termination of the existence of OPEC as a single organization


“The 1970-ies, when a number of major manufacturers to determine the global condition of the oil market by creating a cartel structures, such as OPEC, should be forgotten,” — Sechin said in comments sent to Reuters by e-mail.

He also added that at present “a number of objective factors exclude the possibility of any cartel to dictate terms to the market.” “As for OPEC, it has practically ceased to exist as a unified organization,” Sechin concluded.

Sechin, who Reuters calls “the most influential” Russian oil a top Manager and longtime ally of President Vladimir Putin”, was given its first review after leading oil producers at the April meeting in Qatar were unable to agree to freeze production to support oil prices, the Agency said. Sechin previously expressed a skeptical opinion in regard to OPEC, reminds Reuters. In particular, he said that Russia, as a leading manufacturer needs to adhere to its own policies and to protect its share in the oil market.

In June 2015, after OPEC maintained oil production quota at 30 million barrels. a day, the head of “Rosneft” declared that the cartel reduced its impact on pricing in the oil market, and now a greater impact on this market have USA. Sechin said that the main factor affecting the formation of prices of oil, remain the operating costs of companies, which do not take into account the full cycle of costs of production.

In September last year at the FT Commodities conference in Singapore Sechin said he sees no sense in the possibility of Russia joining OPEC. Among the main reasons he called the technological differences in the methods of oil production and the fact that the Russian oil market almost completely privatized.

In November 2015 at the conference “energy Bridge Russia-Japan” in Tokyo Sechin reiterated that the regulation of the oil market from the OPEC countries moved to the United States. According to him, the structure of production and export flows of oil in recent years has changed. These changes, said the head of “Rosneft”, connected to “the phenomenon of shale production and the fact that the balancing that was previously carried out in OPEC, moved, essentially, to the regional US market, which has become the most important regulator of global scale.”

That OPEC has virtually ceased to influence the oil market, in late April, said LUKOIL President Vagit Alekperov and the Minister of energy of Russia Alexander Novak in an interview.