
Russia is well positioned to withstand disruptions in global oil markets triggered by the war in Iran, a top official said on Thursday.
"There is currently a clear shortage of oil products on global markets," Deputy Prime Minister Alexander Novak said during a meeting with a Russian business lobby group.
Prices for petrol, diesel and other refined products have risen even more sharply than crude oil, he noted, adding that Russia is benefiting from the situation.
Western sanctions imposed in response to the war in Ukraine had forced Russian exporters to sell oil at a discount. However, Novak said this discount has now narrowed significantly. In some regions, Russian oil is even being sold at a premium, he said.
At the same time, Novak expressed cautious optimism about expanding production. "This will require time, investment and access to capital," he said, noting that increasing output is a lengthy process.
Kirill Dmitriev, a senior Kremlin official responsible for international economic relations, struck an even more optimistic tone at the same event.
"Russia is in a very strong position - not only as a major producer of oil and gas, but also of fertilizers," he said.
He warned that the world is heading toward a major fuel price crisis and predicted oil prices could rise to between $150 and $200 per barrel.
Dmitriev argued that Europe would be particularly hard hit after turning away from Russian energy.
He warned of potential large-scale de-industrialization and claimed that "Europe and the UK will be begging for Russian energy supplies," adding that Russia would then decide whether to resume deliveries.
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