Alexey Gromov, Principal Director on Energy Studies of the Institute for Energy and Finance commented to the Federal Press Internet portal regarding the possibility of further growth in world oil prices in the near future.
A gas shortage in Europe, combined with a cold winter, may cause oil prices to rise to $ 100 per barrel as early as the first quarter of 2022. This is stated in the next review of the Bank of America Merrill Lynch. The main beneficiary among the global players of the OPEC + member countries will be Rosneft, one of the largest Russian companies.
OPEC + does not want high oil prices
The OPEC + leaders have repeatedly stated that they categorically do not want returning three-digit oil prices, because this will kill the industry even not in the long term, but in the medium term due to the advanced development of other industries and renewable energy technologies, Alexey Gromov recalls. Therefore, the expert believes, if gas prices begin to be projected onto the oil market, the OPEC countries will decide to accelerate increasing production in order to prevent a dangerous rise in prices. Such a decision can be made, for example, at two events upcoming in November: the OPEC conference and the OPEC + ministerial meeting.
In addition, he recalls, the most ambitious projects of Rosneft in new production regions receive significant benefits from the state. In combination with the low cost of production at old assets, it is Rosneft that gets the greatest profit in a situation of rising oil prices or simply high oil prices.
“Undoubtedly, Rosneft has the cheapest production in Russia, so in fact it makes a profit even at today's prices,” Gromov said.
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