Cooperation between the Organization of the Petroleum Exporting Countries (OPEC) and some non-OPEC oil producing countries has become meaningless, according to the head of Russian energy giant Rosneft.
Due to both U.S. sanctions and COVID-19, the OPEC agreement means little, Igor Sechin told Russia 24 TV late Friday.
"Cooperation between OPEC and some non-OPEC crude oil producer countries has now lost meaning. The reasons for the state of the political and consumer market are now more meaningful," Sechin said.
Sechin, one of the figures behind Russia's decision to withdraw from OPEC, said Russia has to maintain its market share in oil.
He stated that the U.S. became the world leader in oil production due to OPEC not cutting production on March 6.
He stressed that the U.S. entered the European oil market rapidly thanks to the decision, adding that under the agreement, U.S. oil exports to the Indian market rose tenfold and to European markets sixfold.
Sechin said that the decision not to cut production at the March 6 meeting of OPEC and some non-OPEC crude oil producers in Austria caused oil prices to fall to the lowest level in four years.