Russian President Vladimir Putin, commenting on oil prices, mentioned that politics was often excessive in the prize-making process of energy resources. He added that the situation on the market could be used to manipulate prices for the benefit of some countries. Vyacheslav Kilagin, the director of the Center for Studies of World Energy Markets at the RAS Institute of Energy Research, drew attention to the fact that geopolitical factors could serve as instruments for short-term changes in market prices. The expert called $100 per barrel an optimal price for the main players on the market.
In his opinion, no large player on the market wanted cheap oil, it was both harmful for the Russian economy and untraditional resource extraction, the budget of Saudi Arabia, deep-water extraction and renewable energy projects of the European Union.
Concerning goals worth sacrificing for some economic progress, Kulagin said that Saudi Arabia could use the opportunity to push its competitors and slow down the launch of new expensive projects in other countries, making the country a leader in the future, while the U.S. wanted to weaken the Russian economy, which would be quite easy by reducing oil prices. He predicts that the current price will not last over a year.
Valery Nesterov, an analyst of Sberbank CIB, said that the speculative factor in oil prices was around 20-30%. In his opinion, the U.S. and the EU were directly interested in falling oil prices. The expert assumed that a price of $80 per barrel of oil would boost economic development in the U.S. and Europe, while oil exporters, such as Russia, are the only ones to lose.
Russian President Vladimir Putin has mentioned, commenting the oil prices, that politics was often excessive in the prize-making process of energy resources. He added that the situation on the market could be used to manipulate prices for the benefit of some countries. Vyacheslav Kilagin, the director of the Center for Studies of World Energy Markets at the RAS Institute of Energy Research, drew attention to the fact that geopolitical factors could serve as instruments for short-term changes in market prices. The expert called $100 per barrel an optimal price for the main players on the market.In his opinion, no large player on the market wanted cheap oil, it was both harmful for the Russian economy and untraditional resource extraction, the budget of Saudi Arabia, deep-water extraction and renewable energy projects of the European Union.Concerning the goals worth sacrificing some economic progress, Kulagin said that Saudi Arabia could use the opportunity to push competitors and slow down the launch of new expensive projects in other countries, making the country a leader in the future, the U.S. wanted to weaken the Russian economy, which would be quite easy by reducing oil prices. He predicts that the current price will not last over a year.Valery Nesterov, an analyst of Sberbank CIB, said that the speculative factor in the oil prices was around 20-30%. In his opinion, the U.S. and the EU were directly interested in the dropping oil prices. The expert assumed that a price of $80 per barrel of oil would boost economic development in the U.S. and Europe, while oil exporters, such as Russia, are the only ones at los
