Rosneft CEO: Russia loses market share to other OPEC+ countries
Russia is exporting a minor share of its oil production, losing market share to other OPEC+ members.
According to Igor Sechin, CEO of Rosneft, speaking this weekend at the International Economic Forum in St. Petersburg, some OPEC+ members export up to 90% of their oil production, while for Russia the share is about 50% of the total.
“This places our country in a less advantageous position under the current mechanism of impact assessment and access to key markets,” Sechin said . “In this regard, it seems appropriate to monitor not only production quotas, but also export volumes of oil, given the different sizes of national markets.”
Russia's oil exports temporarily declined due to sanctions by Western governments, but earlier this year they returned to pre-war levels, differing only in destination and price.
China and India imported record volumes of Russian oil in May, thus reducing their imports of oil from other sources, such as the Middle East and Africa, Reuters reported earlier this month. In other words, China and India bought less oil from Russian OPEC+ partners than they bought from themselves.
Yet Rosneft's Sechin seems to want to export even more. In fact, Rosneft accounts for about 40% of Russia's total oil production and is its largest single producer. At the forum, Rosneft's top executive also sounded the alarm about future crude oil supplies. “In the coming years, mankind will face the problem of production capacities and OPEC countries will no longer be able to meet the growing demand,” Sechin said, noting Saudi Arabia's plans to increase production capacity by 2 million bpd between 2025 and 2027.
Saudi Arabia has also repeatedly warned that OPEC – and therefore the world – is running out of spare oil production capacity, jeopardizing future supplies. However, the economic crisis is weighing more than the expectations of a price peak.
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The article Rosneft CEO: Russia loses market share to other OPEC+ countries comes from Economic Scenarios .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/il-ceo-di-rosneft-la-russia-perde-quote-di-mercato-a-favore-di-altri-paesi-opec/ on Tue, 20 Jun 2023 07:00:12 +0000.