Journalist Javier Blas, in an article published by the Bloomberg agency, said that the volume of Russian oil production and its prices on the markets indicate that Moscow has achieved victory in the confrontation in the world oil market.
The article notes that this seems obvious and can be seen “whatever indicator you use”.
According to the author of the article, the first evidence of Russia’s victory in this confrontation is the situation with the volume of oil production in Russia. Last month, this figure almost returned to the level of the beginning of the year, averaging 10.8 million barrels per day, which is slightly lower than January’s 11 million barrels. “July was the third month in a row that oil production in Russia recovered,” he said.
The second evidence is the price of Russian oil on the world market. Initially, Russia was forced to sell oil at huge discounts, but in recent weeks Moscow has regained the ability to raise prices, taking advantage of the limited supply on the market. “At least it looks like energy sanctions are not working right now,” the author of the article added.
The article emphasized that the measure of Russia’s recent success is a political measure related to the nature of the market.
According to the article, “In the spring, Western politicians were very optimistic in their expectations that OPEC, led by Saudi Arabia and the United Arab Emirates, would abandon the alliance with Russia, but the opposite happened. Shortly after the visit of US President Joe Biden to Riyadh, the Russian Deputy Prime Minister flew Alexander Novak There, a few days later, OPEC + announced only a slight increase in oil production.
“When European sanctions on Russian oil exports come into effect in November, governments in the region will face a difficult choice as the energy crisis begins to affect consumers and industrial companies,” said Javier Blas.
According to the author of the article, cold weather with a sharp increase in demand for electricity and inflation at the end of this year could undermine Western support for Ukraine.
Source: RIA Novosti