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Russia’s Novak: Unpredictable US, protectionism behind oil price volatility

Russian Energy Minister Alexander Novak said in an interview overnight, rising protectionism and the unpredictability of the US administration have greatly contributed to global oil price volatility over the past two years, Reuters reports.

Key Quotes:

“All these uncertainties, which are now on the market: how China will behave, how India will behave... trade wars and unpredictability on the part of the U.S. administration... those are defining factors for price volatility,”

U.S. decision to allow some countries to trade Iranian oil after putting Tehran under sanctions was one of the key factors behind this month’s global pact to cut oil output by 1.2 million barrels per day.

“Had it been hard sanctions against Iran, we wouldn’t have done it (reduce output).” 

Russia would be able to boost its annual output by 10-15 million tonnes (200,000-300,000 bpd) over the next two years.

It is only a question of time before oil production in the United States begins to decline.

“I think they are faced with some difficulties. Despite the recent boom (in their output) their efficiency has fallen, it is more difficult for them to raise funds.” 

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