The markets need a predictable price of crude oil futures, according to the Russian giant Lukoil.
“The most important thing is not to have a price of 100 USD per barrel, which will be a big problem for the industry, but to have a predictable level of 55-60 USD per barrel for the next 10 year. In such scenario both consumers and producers will be happy”, said the president of Lukoil, Vagit Alekperov. The Azerbaijani-Russian businessman is the largest shareholder in Lukoil with a share of about 25%.
He also commented on the possibilities of extending OPEC oil production restrictions, stating that is oil price is below 50 USD per barrel possibly the OPEC+ quota deal should be extended, but if they stabilized above 55 USD per barrel it is not needed.
In his interview, the oil tycoon warned that sanctions against Russia could last for a decade. Oil and gas companies in the country will have to prepare for a long period of time with restrictions.
“In our strategic plan for the next 10 years, we foresee that the sanctions will remain”, commented Vagit Alekperov, pointing out that even if steps were taken to remove the restrictions earlier, the process would be very complicated.
With a daily production of 1.8 million barrel, Lukoil is the second largest in Russia after the state-owned Rosneft. Following the annexation of Crimea, the EU and several other states have imposed sanctions against Moscow, including a ban on financing and selling technology for energy companies, including Lukoil.