Oil price expected to rise to $200 due to Russia

FT announced traders’ predictions for oil price to rise above $200 a barrel

Experts predict a rise in world oil prices to above 200 a barrel due to the increasing international boycott of Russian energy resources and the shortage of alternative sources of supply, the Financial Times reports.

For example, the head of the hedge fund Andurand Capital, Pierre Andurand, admits that the oil supply from Russia to Europe may stop due to the situation in Ukraine. Then it will lead to the transformation of the global energy market.

Other analysts also believe that Russian oil and oil products, including diesel, will not return to the European market anytime soon. According to their estimates, the market will lose about three million barrels of Russian oil per day.

Merchant Commodity Fund chief Doug King predicts prices will rise to $200-$250 a barrel this year. The US shale sector is unlikely to come to the rescue and increase production to lower oil prices, SOCAR trader Daniel House said. Even if they want to accelerate the production increase, it will take a year or even longer.

If Russian oil is abandoned, the price could rise to $300 a barrel, Deputy Prime Minister Alexander Novak admitted earlier. He added that the decision by the United States and Britain to refuse imports of Russian oil and oil products had little effect on Moscow.

Source: Lenta

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