Western sanctions don't hit oil prices, say Russian experts

 

Among western experts there is an opinion that the sanctions against Russia could lead to a considerable reduction in the supply of oil on the world market and to a sharp rise in the prices for it. In particular, a similar statement was made by the ex-head of BP, and nowadays the chairman of the board of directors of Glencore, Tony Hayward.However Russian experts aren't inclined to dramatize the situation excessively. So in conversation with a correspondent of "Vestnik Kavkaza" the chairman of the State Duma Committee on Energy, Ivan Grachev, noted that of course Russia is a key player in the European and world oil market, but sanctions don't influence it, as "they don't concern already-existing projects."Speaking about more remote prospects, the head of the State Duma Committee emphasized that, as the further growth of production of energy resources is connected with an advance to the north, on the shelf and with the use of difficult technologies on old fields, according to him, this could really lead to a rise in prices to the maximum. "In this case, it would be necessary to take forecasts of the prices which took place, and, for example, for 20 years ahead the range will be between $50 and $500 for a barrel, and to consider that most likely the scenario with the highest prices will be realized," Grachev concluded.Now various speculative expectations are influencing the world oil market and the balance of supply and demand on it, according to the director of the center for studying the world energy markets of the Institute of Energy Research of the Russian Academy of Sciences, Vyacheslav Kulagin, but now they are already shown to a lesser extent than we observed 5 years ago."

 

Among western experts there is an opinion that the sanctions against Russia could lead to a considerable reduction in the supply of oil on the world market and to a sharp rise in the prices for it. In particular, a similar statement was made by the ex-head of BP, and nowadays the chairman of the board of directors of Glencore, Tony Hayward.

 

 

However Russian experts aren't inclined to dramatize the situation excessively. So in conversation with a correspondent of "Vestnik Kavkaza" the chairman of the State Duma Committee on Energy, Ivan Grachev, noted that of course Russia is a key player in the European and world oil market, but sanctions don't influence it, as "they don't concern already-existing projects."

 

Speaking about more remote prospects, the head of the State Duma Committee emphasized that, as the further growth of production of energy resources is connected with an advance to the north, on the shelf and with the use of difficult technologies on old fields, according to him, this could really lead to a rise in prices to the maximum. "In this case, it would be necessary to take forecasts of the prices which took place, and, for example, for 20 years ahead the range will be between $50 and $500 for a barrel, and to consider that most likely the scenario with the highest prices will be realized," Grachev concluded.

 

Now various speculative expectations are influencing the world oil market and the balance of supply and demand on it, according to the director of the center for studying the world energy markets of the Institute of Energy Research of the Russian Academy of Sciences, Vyacheslav Kulagin, but now they are already shown to a lesser extent than we observed 5 years ago."