Europeans will be the first to “suffer” from the oil embargo, according to Moscow

Europeans will be the first to “suffer” from the oil embargo, according to Moscow

The Europeans will be the first to ” suffer of the oil embargo decided within the framework of European sanctions against Russia for its intervention in Ukraine, declared Thursday (June 2) the Russian Deputy Prime Minister in charge of Energy Alexandre Novak.

European consumers will be the first to suffer from this decision. Not only the prices of oil, but also those of petroleum products will increase. I do not exclude that there is a large deficit of petroleum products in the EU “said Mr. Novak in an interview broadcast on Russian television.

The European Union on Monday announced an embargo on 90% of Russian oil by the end of the year, an announcement that increased fears of a shortage.

Mr. Novak dismissed the danger posed by this measure for Russia: “ It’s a deferred decision, it’s for six to eight months, and during this time the market must reorganize “.

After months of waiting despite the surge in prices caused by the conflict in Ukraine, members of OPEC and its allies decided on Thursday to move up a gear and boost their oil production, thus responding to urgent calls of Westerners.

Mr. Novak, first as Minister of Energy and then in the higher rank of Russian Deputy Prime Minister in charge of Energy, has represented Russia to OPEC for years.

Within the informal alliance dubbed “OPEC+”, Russia and OPEC had succeeded at the end of 2016 in jointly limiting their supply, which in total represents half of the planet’s production, allowing them to regain control of a market oil in disarray.

This had kick-started regular, albeit stormy encounters in the following years.

In my opinion and in the opinion of the participants in today’s ministerial meeting, the market is quite balanced. We see that this year the total increase in demand will be around 3.5 to 4 million barrels per day “Said Mr. Novak following an OPEC+ meeting, from which Russia was not sidelined on Thursday.

He said the move by OPEC+ was made to support growing demand.

We see that the demand increases in the summer, the activity of oil refineries will increase, the consumption of petroleum products increases due to more active road travel, air transport increased, he pointed out.

Thus, the decision (of OPEC+) will balance the markets and ensure the balance between supply and demand “, he concluded.

He also anticipated a recovery in demand in China, where containment measures against the coronavirus are still in force, stressing “ the importance for us to continue a constant interaction ” and ” monitor the situation on a monthly basis “.

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