Fitch: Russia is irreplaceable in the oil market

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Fitch: Russia is irreplaceable in the oil market
Fitch: Russia is irreplaceable in the oil market
22 February, 16:34EconomyPhoto: Артур Салимов / Медиахолдинг1Mi
The aggravation of the situation in the east of Ukraine may lead to a significant increase in oil prices. In this market, Russia's share is 10%, and it is impossible to replace it, believes Dmitry Marinchenko, senior director of the group for natural resources and commodities of the international rating agency Fitch.

According to the expert, in the near future the price of oil may rise to $100 per barrel and more.

Against the background of the aggravation of the geopolitical situation caused by the conflict in Donbass, oil has already risen in price by $15 per barrel.

“If the conflict escalates, then restrictions may be imposed on Russian oil exports”, - Kommersant notes.

Expert Marinchenko believes that in this case, the aggravation of the situation is fraught with the onset of an energy crisis.

In the context of the post-pandemic recovery in demand for oil, the supply of Russian hydrocarbons will not be completely replaced. This is impossible even if the economic sanctions against Iraq are promptly lifted.

On the morning of February 22, it became known that the price of Brent oil on the ICE exchange for the first time since September 2014 rose above $ 97 per barrel. This is the highest price since September 2014. The increase in value is noted against the background of the decision to recognize the independence of the self-proclaimed LNR and DNR, taken by Russian President Vladimir Putin. Instability in the region worries investors, which contributes to higher fuel prices.

At the same time, against the backdrop of the crisis, gas prices in Europe are rising.

Recall that on the evening of February 21, Russian President Vladimir Putin supported the recognition of the self-proclaimed Donetsk and Luhansk People's Republics (DPR and LPR) as sovereign states.

Against the backdrop of rising oil prices, shares of Russian companies continued their rapid decline. At the beginning of morning trading on February 22, the Moscow Exchange index fell by 5.44%. The fall occurred against the backdrop of an aggravation of the geopolitical situation in connection with the events in the Donbass. The night before, the Moscow Exchange index showed the largest drop of 10.5%, to 3036. In total, shares of Russian companies collapsed by a trillion rubles.

There hasn't been such a collapse since March 2014. On the news of Russia's recognition of the independence of the self-proclaimed Donetsk and Luhansk People's Republics and the imminent imposition of Western sanctions, the euro soared to more than 90 rubles, and the dollar reached 80 rubles.

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