Lukoil Chief: No Alternative to OPEC Despite Disputes

Lukoil Chief: No Alternative to OPEC Despite DisputesLukoil Chief: No Alternative to OPEC Despite Disputes

There is no alternative to OPEC at the moment, as OPEC is a sufficiently effective instrument to influence the market and it has maintained the demand-supply balance, Lukoil's CEO said.

"Recently, unfortunately, there were many political factors, they also affected OPEC's functioning," Vagit Alekperov told Rossiya 24 television, Sputnik reported.

In April, OPEC and major non-OPEC oil producers failed to agree on freezing oil output at January levels to shore up prices. Saudi Arabia backed out of the deal, insisting that Iran, which has been boosting oil production after years of international sanctions, should be part of any production cuts.

Alekperov noted that the OPEC session in June was constructive, as some solutions to stabilize the market were identified, although they have not yet been adopted.

The Lukoil head stressed that all the members of OPEC were motivated to preserve the organization.

Oil prices have plunged over the past two years from $115 per barrel in June 2014 to less than $30 per barrel in January 2016. The price drop has been attributed to slowing global economic growth, decreasing energy demand and major producers flooding the market with oil. Following the failed talks in April, OPEC members met in Vienna, Austria, on June 2. The organization's member states failed to agree on any major policy changes or establish a cap on oil production.

The next OPEC meeting will be held on November 30.