The beginning of OPEC’s end: experts

Energy experts believe that the OPEC’s last meetings on oil price fall shows that it will soon “disappear” while Algeria seeks new clients in free market.

“OPEC stopped serving all its members. Each member wants to serve its interests. Decisions made in meetings can not be applicable anymore. We are about to witness prices war and a big speculation,” economy expert Abderrahmane Mabtoul said.

“I have worked at Sonatrach for more than 30 years. Each time we meet with Russia to set a road map for prices and marketing, Moscow did not respect the agreements,” he added.

He also said the Tehran meeting showed the intention of each county in serving its economy. “OPEC has become weak while Russia has 20 percent of free market. The US wants to hugely raise its production by 2017. Mozambique will be the third largest producer in Africa soon. Because of that, Algeria’s share decreased to 8 percent from 13 percent in the last few years.”

Sonatrach’s former CEO Abdelmadjid Attar said most of the company’s contracts on gas marketing will expire in 2019. It will have to seek new markets and negotiate for long term contract with satisfying prices. Because of that, it is under pressure from European countries.

“Europe wants to reduce the price through misleading reports. Algeria’s gas and oil is still demanded,” he told Echorouk.

Mustapah Ben Khemmou, a former director at Sonatrach said the situation will be difficult for the company as Iran will have high production averages by January 2016.

“Because of that, the government should go to free market. Prices may fall more in the next few months,” he added.