OPEC Needs To Monitor Output And Exports: Rosneft Head

OPEC+ needs to monitor not only production of the member countries but also their exports, Igor Sechin, head of Russian Rosneft, said.

• Some OPEC+ member states exports as much as 90% of their output. Russia’s share of crude exports from total production is around 50%, Sechin said.
• This “puts our country at a disadvantage given the current monitoring mechanism” in OPEC+, he said. “It seems appropriate to consider monitoring not only the production quotas, but also the oil exports, taking into account different sizes of domestic markets,” he added.
• It is getting more difficult for OPEC to reach consensus because of different economic structures and diverging output trends in the member states, according to Sechin.
• “The Middle Eastern OPEC countries are increasing their production and diversifying their economies, developing the non-oil sector,” Sechin said. “The African OPEC nations are steadily decreasing output, losing their share on the global oil market,” he said.
• The latest four-week average of Russian seaborne shipments edged higher in the period to 4 June, rising to 3.73mbpd, from a revised 3.68mbpd in the period to 28 May.