LUKOIL Vice President Leonid Fedun in an interview with RBC called the world’s main transaction on oil – OPEC + – potentially eternal, suggesting that it can be extended to uncertain long term.
“It is worth recognizing that the transaction of OPEC + for a long historical perspective. In the conditions of new climatic realities, it may be even forever,” the businessman said.
In his opinion, at the moment, in the issue of regulating the energy market in the world, there is no full-fledged alternative to organizations like OPEC (organization of oil exporters) and agreements concluded.
OPEC transaction + involves simultaneous reduction in oil production by participants who are allocated personal quotas. This is done with the calculation of price increase in a limited offer.
For the first time, the OPEC + transaction, in which members of OPEC participate, as well as third-party partners, including Russia, was concluded at the end of 2017. In the future, it was repeatedly extended, and the conditions and volumes of reduction of production were revised.
In March last year, the main participants could not agree on the next extension, as a result of which the agreement broke out, and the world oil prices decreased sharply. After a month later, the parties were able to come to new agreements.