Russian Deputy Prime Minister’s Outlook on Oil Prices

MOSCOW (Reuters) – Russian Deputy Prime Minister Alexander Novak expects oil price fluctuations to subside, following volatility due to tensions in the Middle East, as geopolitical risks are already factored in, he told Al Arabiya News.

Novak, who oversees the broader Russian economy, stated that the sanctions-hit economy can withstand pressure, and the Western-imposed price caps on Russian oil will not impair it.

“We can live through any price,” Novak told Al Arabiya News in an interview published on Monday.

Oil prices extended gains on Monday, driven by concerns over potential supply pressures from Middle East producers amid escalating conflicts, particularly Israel’s attacks on Iranian-backed forces in the region.

“The events occurring here and now in the Middle East are affecting the market, definitely,” Novak said, commenting on the killing of Hezbollah leader Sayyed Hassan Nasrallah.

Novak remarked on recent market volatility, suggesting, “I think things are going to get back to normal.”

Last week, Brent oil futures fell by about 3%, while U.S. West Texas Intermediate futures declined by around 5%, as demand concerns grew after China’s fiscal stimulus failed to reassure market confidence.

Notably, Novak affirmed that Russia will continue its cooperation with the Organization of the Petroleum Exporting Countries (OPEC) beyond 2025, after the current oil output curb deal known as OPEC+ expires.