Moscow (Reuters) - Russian Deputy Prime Minister Alexander Novak predicts stabilization in oil prices amidst recent volatility caused by Middle East tensions, stating that geopolitical risks have already been accounted for, as reported by Al Arabiya News.
Novak, who oversees the Russian economy, reassured that the country can withstand any economic pressures and price limits imposed by the West on its oil.
"We are prepared for any price scenario," Novak stated in an interview published on Monday.
Oil prices saw an increase on Monday, driven by concerns over potential supply disruptions from Middle Eastern producers following heightened tensions between Israel and Iranian-backed forces in the region. [O/R]
"The ongoing events in the Middle East are certainly impacting the market," Novak remarked in response to the recent developments in the region.
"Prices have experienced volatility in recent weeks," Novak mentioned. "I believe stability will return soon," he added.
Last week, Brent crude fell by approximately 3%, while U.S. West Texas Intermediate futures dropped by about 5% due to concerns over demand following China's fiscal stimulus measures failing to boost market sentiment.
Novak confirmed that Russia plans to extend its collaboration with the Organization of the Petroleum Exporting Countries (OPEC) beyond 2025, when the current agreement on oil production cuts by the OPEC+ coalition expires.
### Analysis:
- Russian Deputy Prime Minister Alexander Novak believes that oil prices will stabilize despite recent fluctuations caused by Middle East tensions.
- Novak expressed confidence in Russia's ability to withstand economic pressures and price restrictions on its oil.
- Oil prices increased on Monday due to concerns over potential disruptions in supply from Middle East producers.
- Novak stated that recent events in the Middle East have impacted the market, leading to price volatility.
- Last week, Brent crude and U.S. West Texas Intermediate futures declined, driven by demand worries following China's fiscal stimulus measures.
- Russia intends to extend its collaboration with OPEC beyond 2025, when the current agreement on oil production cuts expires.
In conclusion, the global oil market is experiencing volatility due to geopolitical tensions in the Middle East. Investors should monitor developments in the region as they can impact oil prices and financial markets worldwide. It is essential to stay informed and adapt investment strategies accordingly to navigate these uncertain times effectively.
