MercoPress. South Atlantic News Agency

Putin anticipates the price of crude could reach US$ 100 a barrel

Russia not interested in higher prices for oil since they encourage extra shale oil production in the United States

The price of crude could rise to US$ 100 per barrel in coming weeks, anticipated Russian president Vladimir Putin during the Energy Week conference held in Moscow.

Putin said it was “quite possible” that a barrel could cost a triple-digit sum. “It is currently rising in price,” he explained. “Russia and our OPEC+ partners are doing everything possible to make the oil market finally stabilize. We are not allowing price hikes. This is not in our interests.”

Higher prices encourage extra shale oil production in the US, meaning that Russia prefers a lower, stable value. As things stand, the price of Brent crude currently sits at US$ 82-83 per barrel. Anyhow Russia is expected to break supply records in 2021

Putin also called for fluctuations in the energy market to be “smooth and balanced,” and explained that Russia is in full compliance with its agreed limits.

“If you look globally, Russia’s reserves are unlimited,” he said. “And we are increasing supplies to Europe even in today’s difficult conditions for ourselves.”

Earlier in the day, Putin also addressed the situation with the country’s gas industry and, in particular, the surge in price seen in Europe as a whole. Putin argued the higher cost was due to a fall in output from wind farms, causing electricity prices to shoot up. This has had a knock-on effect on demand for gas.