Oil prices may soar if Russian crude shunned by West, says Novak

Oil prices may soar if Russian crude shunned by West, says Novak
2 min read
Russian Deputy Prime Minister Alexander Novak warned oil prices could reach $300 a barrel if the West shun Russian crude.
Novak said it was impossible for Europe to avoid buying Russian oil and gas for now [Getty]

Russian Deputy Prime Minister Alexander Novak said on Monday oil prices could reach $300 a barrel if Russian crude was shunned by the West but he said such a scenario was unlikely, TASS news agency reported.

Trading sources have said some buyers have been wary of taking Russian barrels to avoid becoming entangled in Western sanctions imposed following Russia's invasion of Ukraine.

Novak said it was impossible for Europe to avoid buying Russian oil and gas for now, saying European calls to halt purchases were political gestures to attract attention.

"For now it's impossible" for Europe to reject Russian hydrocarbons, he said. "We will see how it goes in the future."

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Russia was working to maintain oil export volumes by addressing logistical issues and would continue its oil and gas production as it was before sanctions, he said.

Two sources told Reuters that Russia had increased its oil and gas condensate output to 11.11 mln barrels per day (bpd) between March 1 and March 20, from an average output of 11.06 bpd recorded in February.

Novak said Moscow was considering banning uranium exports of Russia uranium to the United States to retaliate for sanctions.

The United States relies on Russia and its allies Kazakhstan and Uzbekistan for about half its uranium imports, which are used to power US nuclear plants.

(Reuters)