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Rosneft: Sanctions policy may lead to record high oil prices, warned Mr Sechin

Rosneft: Sanctions policy may lead to record high oil prices, warned Mr Sechin

CEO Rosneft Igor Sechin during his speech at the St. Petersburg International Economic Forum (SPIEF) warned that the policy of sanctions and ultimatums being used in the oil and gas markets may lead to commodity “super-cycles”. These decades-long spikes and falls may lead to record high oil prices in the nearest future, Sputnik reported.

Igor Sechin, an economist and CEO of the Russian energy giant Rosneft, explained to the SPIEF guests from all over the world that policy of ultimatums may push the oil and gas commodity prices to rise abruptly.

“The policy of sanctions and ultimatums applied to hydrocarbon markets cannot but lead to a permanent ‘sanctioning bonus’ in price. I do not exclude the possibility that later we will talk about sanctions-related commodity ‘super-cycles’ and we will see new price records in the near future,”

Mr Sechin said.

Saying about the economic sanctions, the current weapon of West, Sechin assured that Rosneft sees no threats from demand-related factors for the development of the world oil market. The reason is simple and obvious, as the world economy still has large sectors like aviation, water freight road transport as well as petrochemicals, Russia’s economy and its oil giants are well. When oil consumption is growing in large economy’s sectors, Rosneft is expected to significantly contribute to the increase in demand for petroleum products.

Earlier, Sechin said that the downturn in oil prices might not last because of sanctions.

“The policy of sanctions and ultimatums applied to hydrocarbons markets will inevitably lead to a permanent ‘sanctions premium’ in the price,”

he concluded.