OPEC unable to affect oil prices for long time

OPEC has been unable to cope with its tasks for a long time, said Mikhail Krutikhin, analyst in the fuel-energy complex, partner of RusEnergy company.

The expert said that OPEC has become a social club, which does not affect the oil prices at all.

"I have not been interested in OPEC for many years because it has lost the function of the cartel," Krutikhin told Trend by phone. "OPEC is unable to manipulate the volumes of production and export to maintain prices."

The analyst said that there is no solidarity in OPEC.

Krutikhin said that each OPEC member-state has no separate quota for several years.
The analyst added that nobody intends to comply with a total quota for the entire organization.

"This is a social club," the expert said. "The ministers gather to talk about their success in golf, Arabian horses and discuss other interesting topics. But as the cartel, OPEC has not been affecting the oil prices for a long time."

Krutikhin ruled out the possibility of establishing an organization of oil producers, an alternative to OPEC.

"The OPEC member-states' governments are able to regulate the volumes of oil production and export," the analyst said. "There is not such a possibility in two other major oil producers - US and Russia."

"The state organizations affect the volumes neither in the US nor Russia," the expert said. "The certain companies affect the volumes. These companies pay no attention to the patriotic, political, geo-political calls of the leadership and do everything favorable for them."

OPEC includes 13 countries: Algeria, Angola, Ecuador, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates and Venezuela.

/By Trend/