OPEC no longer powerful – Kachikwu

Nigeria’s Minister of State for Petroleum Resources, Emmanuel Kachikwu, has said that the Organisation for Petroleum Exporting Countries, OPEC, no longer holds the world in its palm as the cartel now produces just 30 percent of global oil.
He revealed this during a chat in Lagos over the weekend.
According to him, OPEC needs to get over the world’s superpower, saying the only solution to oil prices rebalancing is an agreement with non-OPEC oil producing countries.
“It will shock you that OPEC now produces just 30 percent of world’s oil, especially now that you have the influx of fossil fuel, shale and the likes. So, the only solution to oil prices today is a handshake,” he said.
Kachikwu said Nigeria and OPEC must begin to think of the sustainability of its investments in the sector, and come to a working price globally.
OPEC used to be the world’s major oil producer and a major price determining group.
Last week, Kachikwu expressed doubt over after saying the OPEC’s next meeting coming up in September may not yield any success in terms of the freeze talk.
Recent report has it that OPEC will meet on the sidelines of the International Energy Forum (IEF) conference in Algeria on Sept. 26-28.
According to OPEC sources, the group will  revive talks on freezing oil output levels when it meets non-OPEC as top exporter, Saudi Arabia appears to want higher prices, although Iran, Iraq and Russia present obstacles to a deal.
Taking to his social media Twitter account last week, Kachikwu said he was not sure OPEC would reach any positive deal.
“Optimism on my part is quite sparse, but I believe engagement with the 70 percent oil producers might have an impact,” Kachikwu wrote on his Twitter account.
Amid the doubts, oil prices reached their highest levels in more than five weeks last week as the market rode optimism over potential producer action to prop up the market.
Oil production losses in Nigeria, where more than 700,000 barrels per day (bpd) was missing due to militant attacks and pipeline problems, were also helping to support prices in the Atlantic Basin.
Brent crude futures hit a high of $48.74 per barrel, their highest since July 7, in morning trade. They were trading at $48.59 per barrel weekend, up 24 cents from their last close, and around 17 percent higher than the $41.51 low for the month on Aug. 2.
Last week, Energy Minister Khalid al-Falih said Saudi Arabia will work with OPEC and non-OPEC members to help stabilise oil markets.
“The comments by the Saudi energy minister give a positive indication that they are willing to go for a freeze deal but the question remains: on what level?” said an OPEC source from a key Middle Eastern producer.
“Will the freeze be at January levels? And what about Iran?And then there is Nigeria, which has lost a lot of production since January,” the source added.
Only days after Falih’s remarks, Energy Minister, Alexander Novak was quoted as saying Russia is consulting with Saudi Arabia and other producers to achieve oil market stability, adding that the door is still open for more discussions on output freeze, if needed.
Saudi Arabia, together with Russia and the United States a rival for the position of the world’s top oil producer, boosted output to 10.67 million barrels per day in July from 10.2 million in January, when the freeze idea first emerged.