The company expects the recovery in oil prices, as the current situation is related to geopolitical factors, said the press-Secretary of Rosneft Mikhail Leontyev. According to him, no one expected such a “brazen gaming is on the decline”.
MOSCOW, 17 Jan. Cancellation of international sanctions against Iran should not have a major impact on the global oil market, since the market has long played this likelihood, moreover, for serious production capacity Iran needs investment, to achieve which it would be difficult, at current prices, said Vice President and spokesman of the largest oil companies of Russia “Rosneft” Mikhail Leontyev.
Saturday, January 16, Iran got rid of most of the sanctions — the day of implementation of the IAEA presented a report confirming the readiness of the authorities to implement it through a long negotiation program by a significant reduction of its nuclear potential. Later removing economic and financial sanctions with Iran was confirmed by the head of EU diplomacy Federica Mogherini and U.S. Secretary of state John Kerry.
“Normally it (the lifting of sanctions — ed.) will be affected (market — ed.). Because sanctions are in any case not the way to solve the pricing and commercial objectives, and never anybody so did not consider. Russia has made a very significant contribution to the lifting of sanctions, despite speculation that the us is not profitable. This is nonsense. This short-sighted nonsense,” — said Leontiev.
According to him, in fact major changes in oil prices news about Iran should also not bring. “The price problem is very poorly connected with Iranian volumes that may enter the market. Rather, they are local in nature. From the speculative point of view, the output of Iranian oil to the market already wagered 10 times. In General, the ability of the oil market is 10 times the same soup are endless. Because there is no sensation in today’s decision. It’s like remakes of successful movie projects, when the same are trying to squeeze extra profits”, — said the representative of “Rosneft”.
Iran, as noted by the representative of “Rosneft”, badly needs investment. “There are reserves that could enter the market. But to seriously increase production, Iran needs investment. To ensure that serious investments need oil environment, much different from the current one. Roughly speaking, the prices have dropped thanks to Iran, they first have to climb”, he added.
With regard to the contacts of “Rosneft” with Iran, Leont’ev noted that the company conducted and will continue to negotiate with its Iranian partners. “We’re talking to them specifically and for a long time. Iran is a very interesting and challenging partner. We talk and we talk,” he said.
Supply and demand is neither here nor there
According to Leontiev, the oil market in the current state to the minimum extent is determined by supply and demand. “In the long term, of course, he will always be them to decide. But the current market is under pressure manipulations, and supply and demand is neither here nor there,” said Leontiev.
The position of Rosneft is that the company expects to see a substantial recovery by the end of 2017. “But this recovery associated with fundamental factors. That is, up to this point will accumulate — if anything sudden will not happen — enough gap in the market to start recovery in prices,” he said.
According to Barclays Bank, investment in energy has declined by 23%, and this year expects the same reduction. “This is a tremendous decline of investment. It is therefore evident that there will take additional resources. In the development of no one is invested, all work on existing fields,” — said Leontiev.
“It is possible that the reversal will come faster, because no one expected such a powerful and brazen gaming is on the decline. The current price has no relation to fundamental and geopolitical factors… the Market expectations creates a huge pool of analytical, media and rating agencies, which are all connected with players — main banks. Of course they perform the task set by the people manipulating the oil market”, he added.
