Report: Russia’s Rosneft CEO sees oil deficit in 3–5 years

MOSCOW, Jun 15 (PRIME) -- The world oil market will balance demand and supply faster than many forecasts expected, but deficit of oil is possible in three to five years due to contraction of investments, Igor Sechin, CEO of Russian oil major Rosneft, said in an interview to Italian business daily Il Sole 24 Ore seen by PRIME Wednesday.

“Analysts expect an average annual Brent oil price at U.S. $40–45 in 2016. International demand for oil continues to grow, while production is falling, and production in the U.S. is falling in the first place. The current insignificant surplus of oil production will be covered by growing demand, which means that a period of consistent price growth is coming, which will ensure necessary yield of investment in new production projects,” he said.

The oil price has already reached a balanced level of $50 without consent of oil producing countries to freeze production.

“The market is reaching a balanced state faster than many analysts expected,” he said.

“Who knows, maybe the market will need another type of agreement in three to five years, when oil producers have to increase production and supplies of oil from strategic reserves to cover the deficit that will emerge after a period of low investments fast.”

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