The present crisis in the global energy market is deeply rooted in OPEC managing the oil prices, LUKoil and PetroChina Board of Directors Member Richard Matzke told Sputnik on the sidelines of the IHS Energy CERAWeek conference in Houston, Texas.

HOUSTON (Sputnik) � Global oil prices dropped from $115 to less than $30 per barrel between June 2014 and January 2016, hitting their lowest levels since 2003

"If we never had an OPEC or an OPEC equivalent managing price we probably wouldn�t be in all the troubles we have with these ups and downs," Matzke said commenting on the low oil prices.

On February 16, Russia, Saudi Arabia, Qatar and Venezuela held talks on the current oil market situation in the Qatari capital of Doha. They agreed to proceed with an output freeze if other countries joined the initiative. The proposal was later backed by Ecuador, Algeria, Nigeria, Oman, Kuwait and the United Arab Emirates.

The LUKoil board member continued that now it is probably impossible to return to a global oil market that follows exclusively economic rules.

"The energy business, the commodities we deal with, gas, coal and oil are so abundant, so prevalent, and so in need with the number of people we have today, you can not rearrange this thing so it follows normal economic rules," he said.

The LUKoil board member commented that �the rest of the world will somehow recognize that some form of cooperation is probably a good idea.� Matzke also noted that it is unlikely the world will see massive cuts in oil production in the near future.

The oil production in Russia and Saudi Arabia will become stable by the end of 2016, Richard Matzke told Sputnik on the sidelines of the IHS Energy CERAWeek conference in Houston, Texas.

"By the end of the year, Russian production will probably do more or less as Russia said, they will stabilize more or less,� Matzke said. �The Saudis expect more or less the same thing."

Major players of the world oil market will have to persuade Iran through negotiations not to overproduce oil, which could hinder the resolution of the current issues in the energy market, he said.

"I think they [major players] will have to work with Iran in some way, shape or form in order to be certain Iran doesn�t go overboard on its own production and preclude a reasonable resolution of today�s problems," Matzke stated.

The LUKoil board member added that by major players of the oil market he means Saudi Arabia, Russia, and the United States that are producing 10 million barrels a day.

"I think in order to try to manage what Iran does, there is going to be a lot of negotiations between the major players," Matzke said.

By Sputnik News