Sechin: the oil market is already affected by the devaluation of the dollar and not deal with OPEC

BIG STONE /Primorsky Krai/, September 8. /Offset. Julia Temereva TASS/. The head of “Rosneft” Igor Sechin believes that the oil market is affected is not a deal with OPEC, and the devaluation of the dollar. This opinion he expressed in an interview with TASS.

“I have a question, what affects the market – deal with OPEC or the devaluation of the dollar? Americans through the devaluation of the dollar support their shale producers. I believe that it is not affected by the deal with OPEC, and the devaluation of the dollar,” – said Sechin.

According to him, before the discussion on the extension of the deal with OPEC seriously need to analyze all the factors affecting the market. “In order to discuss this issue (the need to extend a deal with OPEC on production cuts – approx. TASS), it is necessary to seriously analyze all the factors that will influence the market next year. This, first of all, the analysis of budgets, investment programs of the largest oil producers need to watch the level of taxes,” he said.

According to Sechin, also need to pay attention to the lack of participation in the transaction Nigeria and Libya and other countries. “You know, not all participate, as well as in OPEC – Nigeria have been exempted from quotas, Libya. It also must be considered as the state of the oil shale mining, financial instruments that affect the price,” – said the head of “Rosneft”.

He also told TASS that “Rosneft” sees a positive effect from the deal with OPEC to cut production. “Of course. There,” said he, answering the relevant question.

Sechin believes that Saudi Arabia in the case of Saudi Aramco the IPO will encourage OPEC to extend the agreement to reduce oil production. “Be sure to keep an eye on key market events – for example, will Saudi Aramco for an IPO (initial public offering of shares – approx. TASS) or will not go. If you go, then they will be interested in raising prices [of oil], and apparently then will encourage its partners in OPEC, to renew [the deal]. If you don’t go, interest they, probably, less than this will be. They are clever people understand that production cuts will lead to the fact that someone else may take place in the market,” he said.

As reported on 5 September the Minister of energy of Russia Alexander Novak, Russia and Saudi Arabia discussed the possibility of extending the agreement OPEC+ to reduce the production of oil after March 2018. Specific decisions yet, and such a measure is possible as an option, said the head of the Ministry of energy.

Earlier WSJ reported that Russia and Saudi Arabia agreed to extend a deal on production cuts for a further three months March 2018.

In July, the Saudi Minister of energy, industry and mineral resources Khaled bin Abdul Aziz al-Faleh said that he will support the extension of the agreement. With the same statements were Kuwait, Venezuela, Iraq, and Angola.

However, the question of the extension of the transaction is still open, recently reported the Organization of countries – exporters of oil. To discuss OPEC+ plans at a meeting in Vienna in November.