Amid rising global energy demand, oil prices could jump above $100 per barrel if Russia’s oil is pushed out of the market, Russian President Vladimir Putin said on Friday.
“It’s impossible to imagine that the loss of Russian oil volumes will preserve a normal situation in global energy and the economy,” Russian news agency Interfax quoted Putin as saying at an economic discussion forum in Russia.
“This won’t happen, because even if in a bad dream one can imagine that it’s possible to take the Russian producer and Russian traders, who provide a substantial share [of the oil supply] on the world market, out of the equation, prices will immediately skyrocket, everything will instantly shoot up beyond $100 per barrel,” Putin was quoted as saying.
The Russian president said that $100 oil would be hardly in the interests of “economies of countries that are doing poorly, including the economies of European countries.”
The United States has intensified efforts in recent weeks to call on Russia’s remaining customers to stop importing crude from Russia. The pressure has been particularly intense on India, the world’s third-largest crude importer and the second-biggest importer of Russian oil behind China.
Since the Russian invasion of Ukraine, India has relied on the discounted Russian crude banned in the West to reduce its crude import bill.
However, the Trump Administration, facing difficult trade negotiations with India and the dragging war in Ukraine, has singled out India as a culprit for buying Russian oil.
Indian officials have repeatedly said the country would continue to buy the cheap Russian oil. Officials are now reportedly telling Trump Administration officials that India could cut crude imports from Russia if the U.S. were to allow flows from Iran and Venezuela.
Putin said on Thursday that India “will never allow itself to be humiliated” and bow to U.S. pressure to halt Russian oil imports.
By Tsvetana Paraskova for Oilprice.com
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