RusEnergy

07-12-2006 Kommersant - OPEC Secretary General Mohammed Barkindo lashed out at the oil consumers yesterday. The energy security should be viewed on both sides, the security of deliveries and security of demand, Barkindo said, echoing the main thesis of Russia in the gas challenge with Europe. So, the Putin-Miller doctrine is gaining popularity with other suppliers of energy resources. At present, the soaring demand is one of the key factors that make crude prices so skyrocketing. But the supply may exceed the demand already in 2010, Barkindo specified. And everything will be a bit different then. The Organization of Petroleum Exporting Countries (OPEC) produces 42 percent of the world crude but covers no more than 11 percent of processing. Should OPEC boost the output, the price control would go to refineries and OPEC influence would slide on the high supply of crude. Russia's economy will easily endure the drop in crude prices up to $30 and even to $25, said Sergey Ignatyev, chairman of Central Bank of Russia (CBR). But other analysts are not so optimistic. They forecast that in addition to budget deficit, Russia's payment balance will worsen materially and the losses of gold/foreign exchange reserves will be hefty. The rates or economy growth will decline up to complete stagnation.