Geopolitical risks due to military operations in the Middle East have long been built into oil prices, says Alexander Novak.
Russia can withstand any drop in oil prices, as its economy’s dependence on hydrocarbons is said to be declining. Deputy Prime Minister of Russia Alexander Novak said this, Interfax reported on Monday, September 30.
“In general, strategically, we are reducing the dependence of our economy on hydrocarbons, on oil, on gas. If before, for example, budget revenues reached more than 50% from the sale of our resources of energy for export, now less. than 30%. We can survive at any price (for oil – ed.),” he said, answering the question of whether low oil prices are bad for Russia.
According to Novak, events in the Middle East have long been built on the price of oil.
“For me, oil prices are influenced by so many different factors, including factors related to the balance of supply and demand, and economic growth, consumption, that is, demand forecasts of oil The factor is always evaluated by the market And the events that we see today in the Middle East, in one way or another, of course, the market reacts to them,” the official answered when asked if the elimination of the leader of Hezbollah which is Hassan Nasrallah. lead to a significant increase in the price of oil.
As you know, oil prices dropped significantly last week due to Saudi Arabia’s desire to regain market share. At the start of the week, oil prices rose slightly on economic news from China and geopolitical risks after the assassination of the Hezbollah leader.
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Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.