Alexey Gromov, Principal Director on Energy Studies of the Institute for Energy and Finance, commented to the Business FM radio station about new US initiatives in the global oil market.
“In this situation, one should not expect coordinated actions from all oil-importing countries. Because, let's say, again, Japan can join this initiative, with some volume, perhaps India. But this initiative will not be joined by China, which actually has the world's second largest oil reserves after the United States. China is pursuing its own policy, and therefore there is no talk of any global coordination yet. This step is a kind of signal that America wants to influence this situation, especially since we understand that in the United States today, amid this geopolitical tension and rising oil prices, gasoline prices are rising. This, of course, has a negative impact on the rating of President Biden, and, accordingly, requires some decisive steps from the president. But, I emphasize, this step is precisely a demonstration that the United States of America is doing something to change the situation on the world oil market. I think a much more significant step will be the removal of sanctions restrictions on Iran. This step will be much more serious, but, apparently, America is not yet ready to announce that agreements with Iran on this issue have been reached. But I am more than sure that in the coming weeks we will hear about it. From the point of view of common sense, the world economy, the Western economy will not be able to do without Russian oil and gas in the short term. But, again, this is in terms of common sense. Now we see that geopolitics prevails over the economy, prevails over common sense, and therefore nothing can be ruled out at the moment.”
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