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Sechin states that the price of oil should take into account the interests of both consumers and producers

08 June 2024

Igor Sechin, Chief Executive Officer of Rosneft, assessed the potential price of oil in the medium term during the Energy Panel at the 27th St. Petersburg International Economic Forum.

Head of Rosneft recalled that the recent OPEC+ decision was not followed by the stabilization of oil prices and its growth, but on the contrary - its decline.

"This suggests that the market takes into account other factors that affect the global industry. And yet, whatever the price, it should ensure a return on invested capital, and take into account the interests of both consumers and producers," Igor Sechin said, answering a question from the moderator of the Energy Panel.

Then the stability necessary for energy security will be guaranteed, head of Rosneft supped up.

"But you also need to understand what the alternative is. The alternative is reflected in the quote we put on the slide, it’s from Dante's Divine Comedy: "Abandon hope all ye who enter here". It is written on the gates of hell," Igor Sechin noted. "Therefore, we shall act responsibly and look for compromises and consensus based on objective approaches," he added.

Jose Felix Rivas, Venezuela's Sectoral Vice President of Economy, believes that oil prices this year will be linked to the volume of supply. "First of all, it is the supply that is created by the growth of the countries of the South. International conflicts will also have an impact on prices," said the Venezuelan Vice President.

Martin Wiewiorowski, Chairman of the Board of Directors of Advantage Energy, said that we need to look at the forecast of supply and demand dynamics in the oil market. "We just talked about the important role the Global South plays in the oil market. Demand from the region will continue to grow in the coming decade," Wiewiorowski said, adding that the price will stay in the $80-$100 per barrel range and will approach the upper limit as the economy grows.

Nobuo Tanaka, Chairman of the Supervisory Board of the non-profit initiative of the Government of Japan for the development of low-carbon technologies, is confident that oil prices will gradually decline in the long term. "If our goal of zero-carbon emissions is achieved in 2050, it is absolutely inevitable that there will be a decline," he said.

In turn, David Gadzhimirzaev, General Director of AO Technologies OFS, expressed the opinion that oil prices will probably be stable.

"As Igor Ivanovich emphasized in his report, oil consumption will reach the level of 116 million barrels per day by 2045. Today this figure is 102.8 million barrels per day, which is 1.6 million more than last year. By 2025, this figure will already reach 104.3 million barrels. Therefore, my short answer is that oil prices will be stable, because the world needs oil, and we should not forget about it," said the head of Technologies OFS.

Information & Advertising Department
June 8, 2024