A top Russian official has threatened on Monday that a Western ban on Russian oil imports could cause oil prices to more than double to around $300 per barrel, compel the shutdown of Russia’s main gas pipeline to Germany. On Monday, oil prices reached their highest level since 2008 after US Secretary of State Antony Blinken said Washington and European allies were considering a boycott on Russian oil imports.
Oil price will surge up to $300 per barrel
It is self-evident that rejecting Russian oil would have disastrous consequences for the global market. The price increase would be unexpected. It would be $300 per barrel, if not more, according to Russian Deputy Prime Minister Alexander Novak in a statement broadcast on state television.
According to Novak, it will take Europe more than a year to start replacing the volume of oil it receives from Russia, and it will have to pay much higher prices. European politicians must honestly warn their citizens and consumers about what is to come. He went on to say that if countries want to reject Russian energy supplies, they are prepared to do so, CNN posted.
Catastrophic consequences to global economy
Novak also mentioned Germany’s action last month to halt certification of the hugely controversial Nord Stream 2 gas pipeline, saying: They have every right to take a corresponding decision and enact an embargo on gas pumping through the Nord Stream 1 gas pipeline. They, too, are not making such a decision, but European politicians’ statements and accusations against Russia are pushing us in that direction.
Novak stated that Russia, which supplies 40% of Europe’s gas, fully fulfilled its commitments. It would be entirely within Russia’s rights to strike against the European Union after Germany froze the Nord Stream 2 gas certification pipeline last month.
Energy analysts have warned that a ban on Russia’s oil and gas would have catastrophic consequences for energy markets and the global economy. Russia is the world’s third-largest oil producer, trailing only the United States and Saudi Arabia and the world’s largest crude exporter to international markets, according to CNBC.