Russia’s first deputy energy minister, Aleksey Texler, has said it does not see any reason why it need to join OPEC, although noted the importance of cooperation between OPEC and non-OPEC nations after the end of the production cuts.
He said: “At present it is clear that the kind of cooperation that we’re having will continue even if a slightly different format,” through a translator at CERAWeek.
“The need to work together is obvious,” Texler said, although added there was no need to “cement something or cut something in stone”.
The comments come as pressure mounts to institutionalise the OPEC-Russia deal to form a ‘super group’ that would monitor the oil market, with the potential to intervene, even after the current deal to hold back 1.8 million bpd of supplies.
Surging US output is eroding Russia’s market share and is threatening the progress made under the OPEC-led deal.
Furthermore, an International Energy Agency (IEA) report found that over the next 3 years, the US will supply 80% of the global oil demand, with Canada, Brazil and Norway covering the other 20%, leaving no room for OPEC production.