If the Russian authorities decide to sever commercial ties with the Organization of the Petroleum Exporting Countries (OPEC), for which the Russian Federation currently has observer status, the foreign exchange prices of North Sea Brent oil will likely return to $50 a barrel. In such a scenario, OPEC’s influence on the global energy market will weaken, leading to a sharp fall in raw material costs. informs Bloomberg agency.
In addition, the loss of Russia’s possible OPEC observer status may lead to a significant increase in production volumes in the Russian Federation domestic market. In the article, it is stated that this situation will cause an “oil price war” at the global level.
“There is a possibility that Putin will be replaced by someone who does not appreciate the fact that Russia belongs to OPEC. In this case, Russia may decide to increase oil production by provoking an oil price war. As a result, OPEC’s strength will weaken, which will return the world to oil prices at $50 per barrel.
June 29 Bloomberg reportedIn the event of a civil war in Russia, the world commodity market will lose 10% of the total supply. At the same time, a sharp decrease in production in the domestic market of the Russian Federation will inevitably affect the exchange prices of such energy sources.
Former Deputy Prime Minister of Russia Alexander Novak in the openwhen the country runs out of oil