Russian President Vladimir Putin has become the most influential player in the Organization of the Petroleum Exporting Countries (OPEC) because of Russia’s cooperation with the Cartel, which led a year ago to an agreement on the reduction of crude production, wrote RT.
It is the Russian leader who currently manages OPEC, an OPEC official told Bloomberg on condition of anonymity. Russia, which is not even a member of the group, appears to have ended Saudi Arabia’s rule in the oil market; Riyadh had the power to change crude prices, saying only a few words, according to this OPEC official, taken over by RT.
“Putin is now the czar of energy in the world”, at least the opinion of Helima Croft, the analyst at the RBC Capital Markets Institute, based in New York, quoted recently by the media.
Russia Today then recalls that the Russian president’s comments on a possible extension of the agreement with OPEC, pronounced before the transfer to Moscow of King Salman bin Abdulaziz, pushed up crude prices. Putin spoke of a possible extension by the end of 2018 of the agreement on the reduction of crude oil production.
The 14 OPEC member countries are scheduled to meet independent producers like Russia and Mexico next week in Vienna, Austria. And the closer we get to this meeting, the higher the price of crude.
Analysts in the field have looked into the subject. For Eric Liron, senior vice president of Rosneft, or the OPEC cuts would stop at the end of next year or they would continue in 2018. For his part, Edward Chow, a fellow of the Strategic and international studies in Washington, the agreement is likely to be extended given the current geopolitical realities of the world.
The extension of the agreement is beneficial for all parties. Saudi Arabia needs the other major oil-producing countries to be able to influence the market and play a greater role in the geopolitical and economic realms of the Middle East. As for Russia, it sees a good step in favor of its interests, “said Edward Chow.
In December 2016, OPEC, Russia, and other major producers agreed to reduce crude oil production by 1.8 million barrels per day for six months starting January 1 to support the market and push prices higher. $ 60 a barrel. In May, the agreement was extended by nine months.