08 September 2015, Singapore – The Golden Age of OPEC countries to keep oil markets balanced passed when the group decided not to cut production in November last year to end a price rout, the chief executive of Russian oil major Rosneft said.
“The Golden Age of this organization has passed,” Igor Sechin said during the Financial Times’ Commodities Retreat in Singapore on Monday.
“If quotas [for production] had been observed, global oil markets would have been rebalanced by now,” he added, referring to OPEC’s decision in November 2014 to keep production near record highs in defense of market share over prices.
Oil prices have fallen to below $50 per barrel since June 2014 as record global output has started to outweigh consumption. Sechin said an average oil price of $70 dollar per barrel was needed to rebalance global oil markets.