Alexey Belogoryev, Research and Development Director of the Institute for Energy and Finance, commented to the TASS news agency on the consequences of the blocking US sanctions against Rosneft and LUKOIL.
The rise in oil prices is now associated with geopolitical concerns of the market amid the next sanctions against Russia, but fundamentally the oil price will continue to decline, Alexey Belogoryev said.
According to him, it will be possible to talk about the real consequences of sanctions on Russian exports in two to three months.
According to Belogoryev, there are currently no prerequisites for oil prices to turn towards a more significant increase."So far, there is obvious concern on the market, which has resulted in a short-term increase in the geopolitical "premium" in the price of oil by $ 3-4 per barrel. But this will not stop the fundamental downward trend in prices, although it will slow down a bit," he said.
Commenting on the imposed sanctions consequences, the expert called the base scenario the possibility of a short-term decrease in offshore oil supplies and, possibly, some of the Russian oil products in December-February, after which they will return to current values.
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