MOSCOW (Reuters) – Russian Deputy Prime Minister Alexander Novak stated on Wednesday that oil prices are on the rise due to concerns over a potential decline in oil supply resulting from the conflict in the Middle East.
During a televised address following a meeting of top OPEC+ ministers, where they decided to maintain current oil output policies, Novak emphasized that oil prices had already taken into account the ongoing conflict.
In September, oil prices fell below $70 per barrel for the first time since 2021, but have since surged above $75 amidst worries that Iran’s military actions against Israel could disrupt oil production in the region.
“The conflict in the Middle East has already been partially factored into the price,” Novak remarked.
“The market is reacting primarily to the potential decrease in supply as a result of conflict or military activities,” he added.
Analysis:
Russian Deputy Prime Minister Alexander Novak’s comments shed light on the current state of oil prices, which have been influenced by the conflict in the Middle East. The decision by top OPEC+ ministers to maintain oil output policies has also played a role in shaping market dynamics. As a result, oil prices have experienced fluctuations, with concerns over potential supply disruptions driving prices above $75 per barrel. Novak’s remarks underscore the impact of geopolitical events on global oil markets and highlight the need for investors to closely monitor developments in the region to make informed decisions regarding their financial portfolios.