22:11 GMT03 August 2021
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    Global oil prices have significantly dropped compared to summer 2014, and OPEC cannot do anything about it, a US expert told Sputnik.

    MOSCOW (Sputnik), Yulia Shamporova — The Organization of the Petroleum Exporting Countries (OPEC) is irrelevant because it can’t control oil production volumes within it’s own member-countries, the president of PKVerleger LLC, an US energy consulting firm, told Sputnik.

    “OPEC is irrelevant today. Producing countries set their levels of production… Prices will probably fluctuate between 30 and 50 [dollars per barrel]. OPEC <…> has no power,” Dr. Philip K. Verleger said.

    Global oil prices have significantly dropped compared to summer 2014, falling from $100 to $43 per barrel for Brent crude, primarily a result of worldwide oversupply.

    According to the International Energy Agency (IEA), global oil prices will fall further in 2016 in response to decreased demand. 

    Three countries — Russia, Canada and Saudi Arabia — have the ability to raise oil prices, thereby improving energy markets, president of PKVerleger LLC, an US consulting firm on energy markets, told Sputnik.

    "It is possible to return prices to higher levels. Three countries have the capacity to make that happen: Canada, Russia and Saudi Arabia. If the leaders of these three countries decide to cooperate, then prices will rise," Dr. Philip K. Verleger said.

    The expert didn't specify, however, what methods the countries might use.    

    Related:

    OPEC Raises Russia Oil Supply Forecast to 10.69Mln Bbl Per Day in 2015
    OPEC Global Oil Demand Forecasts Increase in 2015, 2016
    End of Wealth: Raw Materials Crisis Hits Saudi Arabia, Rich OPEC Countries
    Tags:
    US, OPEC, International Energy Agency (IEA), prices, Oil
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