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Dollar devaluation, not OPEC crude reduction deal affecting oil market now — Rosneft CEO

September 08, 10:11 UTC+3

Russia’s top oil producer Rosneft sees a positive effect from the deal with OPEC and non-OPEC nations on crude production cut

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© AP Photo/Gregory Bull

BOLSHOI KAMEN /Primorsk Territory/, September 8. /TASS/. Chief Executive Officer of Russia’s top oil producer Rosneft, Igor Sechin, assumes that the effect of the dollar’s devaluation on the oil market is currently higher than that of the OPEC crude production cut agreement.

"I wonder which factor is stronger now - the OPEC deal or the dollar’s devaluation. The Americans are supporting their shale producers through the dollar’s devaluation. I think that the effect of the dollar’s devaluation is stronger than the OPEC deal," he told TASS.

Russia’s top oil producer sees a positive effect from the deal with OPEC and non-OPEC nations on crude production cut, the company’s CEO told TASS.

"Of course, there is," he said when asked a respective question.

It is necessary to thoroughly analyze all factors affecting the oil market before considering the issue of extending the deal with OPEC and non-OPEC nations on crude production cut, Sechin said.

"In order to discuss the issue (extension of OPEC oil production cut deal - TASS) it is necessary to analyze all factors that will be effecting the market next year very thoroughly. This is first of all the assessment of budgets, investment programs of biggest oil producers, tax level," he said.

According to Sechin, it is also important to pay attention to the fact that Nigeria and Libya are not participating in the deal. "You know that not all even OPEC members are participating, Nigeria has been freed from fixing quotas, Libya. It should be taken into account as well, similar to the state of shale production, financial instruments that affect the price," he said.

Saudi Arabia will push OPEC towards the extension of the oil production cut agreement in case of Saudi Aramco’s IPO, Igor Sechin said.

"It is necessary to keep an eye on the highlights on the market, say, whether Saudi Aramco will carry out an IPO (initial public offering - TASS) or it will not. If it does it will be interested in an (oil) price rise and will apparently be pushing its OPEC partners to extend (the deal). If it does not it will probably have less interest in it," he said, adding that the company is aware of the fact that "the output reduction will allow some other player to take the market share.".

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