Experts predicting collapse of OPEC

Oil can rise only against the background of global economic growth

Baku. 18 April. REPORT.AZ/ Failed Doha negotiations could lead to the collapse of the OPEC. 

Report informs referring to, the deputy chairman of IHS Daniel Yergin, a historian energy industry, called oil expert, points out that the cartel can't cope with this anymore. "It does not act on the market as a single force, participants are divided and pursuing only their own interests."Moreover, in previous years OPEC could not even abide by their own limitations. Until December 2015 the company established production quota of 30 million barrels per day -. This is the amount of oil which can be produced by all OPEC members. The quota is constantly broken and now production has reached 31-32 mln barrels per day.

The situation will become worse if the production will continue to grow. According to the International Energy Agency (IEA), the Russian companies in March increased production by 220 thousand barrels per day -. up to 10.91 million barrels. In February, according to the Central Dispatch Control (CDC), Russia increased its production by 5.3% compared to the same month last year.All other States within and outside OPEC, may also increase production to keep up in the race for market share.

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