Alexey Belogoryev, Research and Development Director of the Institute for Energy and Finance, commented on the Iran-Israel military conflict consequences for the global oil market.
According to the expert, against the background of the situation in the Middle East, the price of Urals brand and other Russian grades will increase in proportion to the growth of world reference oil grades.
At the same time, Belogoryev added that the potential withdrawal of part of oil supplies from the Middle East due to the escalation of the conflict between Iran and Israel improves the positioning of Russian oil. The expert admitted that Russia may be able to temporarily move beyond the markets of India, China and Turkey."The [conflict] will not have an impact on transportation, except for freight. That is, on the one hand, prices will rise, on the other, the cost of freight can theoretically also rise against the background of general growth, but not more than that of other manufacturers," he said.
"But for this, it is necessary that some noticeable volume of oil from the Persian Gulf does not enter the market for at least 2-3 weeks, if not more. Therefore, so far I think that the impact on Russian exports is rather weak. But from the point of view of profitability and cost indicators, this news is, of course, good for Russia and for other OPEC+ countries," the analyst explained.
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