Russian Deputy Prime Minister Reveals When Oil Prices Might Fall

Russian Deputy Prime Minister Alexander Novak has warned that oil prices could rise further if the situation in the Strait of Hormuz—a strategically vital waterway—does not improve. He also offered a forecast regarding when oil prices might eventually decline.

Speaking on the Russian political talk show "Solovyov Live," Novak noted that the global market is currently facing a daily shortfall of approximately 4 to 6 million barrels of oil. He cautioned that unless the situation in the Strait of Hormuz stabilizes, oil prices will remain high and could potentially climb even further.

Novak stated that if supplies from Persian Gulf nations resume, market balance could be restored within one to one-and-a-half years. He further added that the world’s capacity to utilize existing oil reserves to stabilize the market is already nearing exhaustion.

During the program, he also mentioned that the first tanker carrying Russian oil has departed from a Russian port, bound for the global market. On October 9, Trump announced an agreement with Moscow, under which Russia would supply energy to the United States and the global market.

Ukrainian President Volodymyr Zelenskyy, along with lawmakers from both major political camps in the United States, have criticized this agreement. They have warned that the revenue Russia generates from this deal could help prolong its war in Ukraine.

Source: Al Jazeera