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10:27 26 July
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IEA Executive Director: Oil producers’ efforts result in failure - INTERVIEW

Executive director of International Energy Agency (IEA) Fatih Birol’s interview to APA:

- OPEC has achieved reduction in oil output since January. Non-OPEC countries also joined this initiative. Did the expectations come to happen?


- If we look at the oil prices, we see that the figures are almost the same as the figures before the decision to cut the output. In other words, in spite of all efforts of the oil producers, the oil price did not increase significantly.

 

- You said in an interview during the World Energy Congress in October of last year that in the case of increased oil price, the US will put on sale its oil reserves and OPEC members will face serious problem…

 

- All I had predicted did actually happen.  Once the oil price slightly increased, the US put on sale a significant volume of oil. Therefore, the oil went down dramatically. In other words, my predictions proved right.
 

- Will OPEC try to increase the oil price? If it will, how?


- We now see OPEC making such attempts. However, the question is, how far these attempts could enable us to go? We must ponder it because if the oil price exceeds $50, the US will probably put on sale an additional volume of oil. One thing we need to keep in mind is that this second wave might have a negative impact on the oil producers. Therefore, the OPEC countries must give a serious thought to everything and consider other alternatives.

 

- It can be inferred from the points you made that OPEC is losing hopes for price hike in oil...
 

- Time will tell.

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