The China Energy Policy Institute has warned that the decline in Russian oil prices being discussed by the West would further disrupt the global energy supply chain and negatively impact the global economy.
In an article published in the Huangqiu Shibao newspaper, Lin Pujian, dean of the Energy Policy Research Institute, said that sanctions on the Russian energy sector would lead to strong fluctuations in its prices, which would cause global inflation to rise and slow down the global economic recovery.
The energy policy specialist explained that the West’s goal is to try to hit Russia’s energy revenues at the lowest possible cost, adding that “the effect of the oil price ceiling may not be as positive as the US expects.”
Potian said it was “possible” for Moscow to retaliate by cutting oil production.
The Chinese expert pointed to the expectations of the American financial bloc JPMorgan Chase & Co, which is one of the largest banks in the world, that Russia is able to reduce oil production to five million barrels per day without causing serious damage to its economy.
“As a result, the US and Europe will have to deal not only with a possible rise in oil prices, but also with an escalation of the energy war between Russia and the West, which could lead to fundamental changes in the structure of world energy supplies,” the Chinese expert warned.
In addition, the Chinese expert believes that an increase in oil prices in such a situation will inevitably lead to a deterioration in the situation of the world economy, which is already under the pressure of severe inflation.
Source: RIA Novosti