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Oil price will fluctuate between $70 and $75 in 2015 — Rosneft CEO Sechin

November 28, 2014, 16:47 UTC+3

Oil output surplus won't be long-term trend, the Rosneft CEO said, adding that nothing tragic is happening in oil market

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SOCHI, November, 28. /TASS/ Oil price will fluctuate between $70 and $75 in 2015, Russia's oil giant Rosneft's CEO Igor Sechin told the media on Friday. 

In his words, even the price of below $60 per barrel will not to be dramatic for Rosneft.

The statement came after the world oil cartel decided at its Vienna meeting on Thursday to keep production levels unchanged, sinking world oil prices to a four-and-half-year low of under $70 per barrel.

“Even the worst scenario of the oil price of below $60 per barrel will not be dramatic for Rosneft,” Sechin said.

Rosneft has the world’s lowest oil production cost, allowing the Russian oil giant to weather crisis situations confidently, the company’s CEO said.

OPEC’s decision not to cut oil output confirms that nothing tragic is taking place in world oil markets, Rosneft’s chief added.

“Nothing tragic is taking place in the market. I think that OPEC’s decision to leave the oil output at same level proves that,” Sechin told journalists.

He said that consultations which Russian representatives held with OPEC leaders had been successful.

“At least, we agreed that those consultations should continue,” Sechin said.

“We will do profound monitoring, watch how the situation is going to develop and organize meetings if necessary to exchange views and work out recommendations,” the Rosneft chief said.

Igor Sechin is certain that oil overproduction will not be a lasting trend.

Sechin told the media on Friday that demand for crude would be rising with the growth of the world economy. He estimated the influence of US currency control factor on oil prices at 40% The regional factor, such as shale oil production, was causing certain effects on pricing, too.

According to Sechin, Russia's Rosneft and France's Total turnover hits $16 billion over 2 years. “At present, the commodity and cash turnover between Rosneft and Total amounts to about $16 billion,” Sechin said.

The Russian oil giant will buy a stake of about 17% in the Schwedt refinery in Germany, increasing its shareholding to 55%, taking into account its joint venture with the British oil giant BP, Rosneft CEO Igor Sechin said.

“This is a good package allowing us to raise our stake in the management of this enterprise,” Sechin said.

Russian oil major Rosneft CEO Igor Sechin believes that political background affects ties between energy companies.

“Political background always has its influence, but I believe that the corporation should be guided by contracts, accords and should do everything that is not banned by the law,” he said.

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