Rosneft chief: China, not OPEC, now steadies global oil markets
Rosneft's Igor Sechin says China has replaced OPEC as the key stabilising force in global oil markets through import reductions.
Igor Sechin, the head of Russia's largest oil producer Rosneft, has said that China has effectively overtaken OPEC as the primary stabilising force in global energy markets. Speaking at a Russian-Chinese business forum in Vladivostok on Thursday, Sechin argued that Beijing's actions this year have had a greater impact on market equilibrium than the cartel's.
Sechin pointed to China's decision to reduce its crude imports by 5.5 million barrels per day this year as the decisive factor. "This year, China has effectively taken the lead from OPEC and, without being a member of any cartel, has managed to stabilise the global oil market," he said.
A longstanding ally of President Vladimir Putin and a known sceptic of OPEC's approach, Sechin predicted that China's influence would only grow. He noted that the cartel's membership is shrinking, citing the UAE's withdrawal earlier this year, and suggested that Beijing's expanding strategic reserves would further cement its role.
"I believe that further growth in China's reserves will strengthen China's role in the energy market, against a backdrop of OPEC's waning influence and a reduction in the number of its members," Sechin added.