LAUSANNE, April 12. /TASS/. Oil oversupply on the market will be overcome in the course of 2 years, president of Russia’s state-owned oil company Rosneft Igor Sechin said at the 2016 Commodities Global Summit in Lausanne.
"The decisive factor of a sharp fall in oil prices is a significant excess of supply over demand. Today it looks that the oversupply will be overcome in two years," he said.
According to the head of Rosneft, during this period the surplus of supply on the market will be offset due to global growth of economy and consumption, depletion of existing fields, temporary shutdown of complex and underperforming projects.
"That means that it will take some time to achieve the market balance that we find inevitable. During this period the market will be characterized by a continuing volatility and making good decisions will require a proper analysis of short-term and fundamental factors," Sechin said.
- Russian Energy Ministry optimistic on possibility of oil output freeze
- Brent crude oil exceeds $43 per barrel first time since December 2015
- Oil production in Russia in 2017 projected at 2016 level — energy minister
- Kuwait optimistic about Doha meeting on oil output freeze
- Russia to increase oil export in 2016 — minister