Russia’s Novak sees oil price volatility easing despite Middle East unrest By Reuters

MOSCOW (Reuters) – Russian Deputy Prime Minister Alexander Novak expects oil price swings to ease amid volatility from Middle East tensions as geopolitical risks are already factored in, he told Al Arabiya News.

Novak, who also oversees Russia’s broader economy, said the sanctions-hit economy would support any pressure and price caps imposed by the West on the country’s oil.

“We can live at any cost,” Novak told Al Arabiya News in an interview published Monday.

Oil prices extended gains on Monday, supported by growing concerns about potential supply pressures from Middle East producers following increased Israeli attacks on Iran-backed forces in the region. (OR)

“The events happening here and now in the Middle East are definitely affecting the market,” Novak was quoted as saying in response to a question about the killing of Hezbollah leader Sayyed Hassan Nasrallah.

“In recent weeks, prices have been volatile,” Novak told reporters. “I think things will go back to normal,” he added.

It fell about 3 percent last week, while U.S. West Texas Intermediate futures fell about 5 percent as concerns about demand grew after fiscal stimulus from China, the world’s second-largest economy and biggest importer of oil, failed to reassure market confidence.

Novak said Russia would continue its cooperation with the Organization of the Petroleum Exporting Countries (OPEC) after 2025, after which the current agreement to cut oil production by the expanded group known as OPEC+ expires.