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Russian Deputy Prime Minister Alexander Novak has warned that oil prices could rise further if the situation in the strategically important Strait of Hormuz does not improve. He has also offered a forecast for when prices could begin to decline.
Speaking on the Russian political talk show Solovyov Live, Novak said the global oil market was facing a daily shortfall of around 4 million to 6 million barrels. He warned that oil prices would remain high and could climb further unless the situation in the Strait of Hormuz improves.
Novak said the market could return to balance within one to one-and-a-half years if supplies from Persian Gulf countries resume. He added that the world’s ability to use existing oil reserves to stabilise the market was already running out.
During the programme, Novak also said the first tanker carrying Russian oil had departed from a Russian port for the global market. On October 9, US President Donald Trump announced a deal under which Russia would supply energy to the United States and the global market.
Ukrainian President Volodymyr Zelenskyy and lawmakers from both major US political parties have criticised the deal. They warned that the revenue Russia earns from it could help prolong its war in Ukraine. Source: Al Jazeera
