USA, Japan and India scared the forecast of Russian President Vladimir Putin about a possible increase in the cost of oil to $ 100 per barrel. It is reported by Bloomberg.
According to the authors of the article, American, Japanese and Indian officials talked among themselves in private. It is noted that they also communicated with other major consumers and oil producers. These conversations began about three weeks ago. They are especially intense in recent days, when the price of oil exceeded $ 85 per barrel.
It is noted that the United States, Japan and India have a significant pressure on the states that are included in OPEC + to increase oil supplies to compensate for significant increase in prices on the stock exchange.
Putin’s forecast
In mid-October, Vladimir Putin made it that oil can rise to $ 100 per barrel. According to him, Russia does not seek to limit oil production so that the cost “grown to heaven.”
The head of state believes that all actions in the energy market must be “smooth and balanced”. Politician added that he did not discuss oil prices with US President Joe Biden, however, at the level of administrations, contacts are supported.
Putin also warned about the exhaustion of oil. According to him, when the demand of the global market will grow on it, oil will be simply nowhere to take. He stressed that the production of mining increases in OPEC +, but not all countries can do it quickly.
Causes of oil prices
October 25 began it to be known that the price of oil WTI oil has established a record, exceeding $ 85 per barrel for the first time since October 2014.
According to Reuters, the record contributed to the reduction of the global offer and the growth in demand for fuel in the United States and in other countries as the economy is restored after the recession caused by a coronavirus infection.
The World Bank called the use of oil as a substitute for natural gas, the main reason for increasing its price and demand.
It is noted that energy prices have sharply jumped in the third quarter of 2021 and will remain elevated in 2022.
Forecasts
The World Bank expects the cost of oil to be $ 70 per barrel in 2021 and 74 dollars in 2022 amid demand growth.