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


Russian Deputy Prime Minister for Energy Alexander Novak expects “a large shortage of oil products in the EUAfter the EU votes on an embargo on Russian oil.

Europeans will be the first to “to sufferRussia’s Deputy Prime Minister for Energy Alexander Novak said on Thursday (June 2nd) that the oil embargo was decided in the framework of European sanctions against Russia for its intervention in Ukraine.

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«European consumers will be the first to suffer from this decision. Not only oil prices but also oil prices will rise. I do not rule out a large shortage of oil products in the EUHe said in an interview with Russian television.

The European Union announced on Monday an embargo on 90% of Russian oil by the end of the year, an announcement that has raised fears of a shortage. Alexander Novak denied the danger posed by this measure to Russia: “It is a delayed decision, it is for in six to eight months, and during this time the market must be reorganized». After months of wait-and-see attacks in Ukraine over the conflict in Ukraine, members of OPEC and its allies decided on Thursday to move up a gear and boost their oil production, responding to urgent calls. of Westerners.

Alexander Novak, first as Minister of Energy and then as Russia’s Deputy Prime Minister for Energy, has been representing Russia in OPEC for years. Within the informal alliance called “Opep +By the end of 2016, Russia and OPEC had managed to limit their supply, which accounts for half of the world’s production, to regain control of a booming oil market. This had kicked off regular, albeit stormy, meetings in the years that followed.

“An increase of about 3.5 to 4 million barrels per day”

«In my opinion and in the opinion of the participants in today’s ministerial meeting, the market is quite balanced. We find that this year, the total increase in demand will be about 3.5 to 4 million barrels per dayAlexandre Novak said following an OPEC + meeting, which Russia did not rule out on Thursday. He said this decision by OPEC + was taken in support of growing demand. «We are seeing an increase in demand in the summer, the activity of oil refineries will increase, the consumption of petroleum products will increase due to more active road travel, air transportIncreased, 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 coronavirus containment measures are still in place, stressing “the importance for us to continue a constant interactionAnd “to monitor the situation on a monthly basis».

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