West Could Deal With Oil Prices Over $300 Per Barrel If It Cuts Energy Supplies From Russia

Western countries might have to deal with oil prices over $300 per barrel if governments follow on the threats to cut energy supplies from Russia.

“It is absolutely clear that a rejection of Russian oil would lead to catastrophic consequences for the global market,” Alexander Novak, the Russian Deputy Prime Minister, was quoted by Reuters.

Novak added, “The surge in prices would be unpredictable. It would be $300 per barrel if not more.”

The senior Russian minister explained that the European politicians should warn their citizens and customers about what they could expect going ahead.

Russia supplies 40 per cent of Europe’s gas. Novak stated that Moscow is meeting its obligations currently but can still retaliate against Europe.

“In connection with ... the imposition of a ban on Nord Stream 2, we have every right to take a matching decision and impose an embargo on gas pumping through the Nord Stream 1 gas pipeline,” Novak explained.

He added, “So far we are not taking such a decision. But European politicians with their statements and accusations against Russia push us towards that.”