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Russia's Novak says market wary of oil supply cuts due to Middle East conflict

Published 10/02/2024, 11:23 AM
Updated 10/02/2024, 11:30 AM
© Reuters. FILE PHOTO: Russia's Deputy Prime Minister Alexander Novak attends a session of the St. Petersburg International Economic Forum (SPIEF) in Saint Petersburg, Russia June 6, 2024. Sergey Kulakov/Roscongress Foundation via REUTERS/File Photo
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MOSCOW (Reuters) - Russian Deputy Prime Minister Alexander Novak said on Wednesday that oil prices have increased as markets do not rule out a decline in oil supply due to the conflict in the Middle East.

In televised comments after a meeting of top OPEC+ ministers kept oil output policy unchanged, including a plan to start raising output from December, Novak also reiterated that oil prices were already factoring in the conflict.

Oil prices dropped below $70 a barrel in September for the first time since 2021, but have since rallied above $75 on concerns Iran's military attack on Israel could disrupt output from the region.

© Reuters. FILE PHOTO: Russia's Deputy Prime Minister Alexander Novak attends a session of the St. Petersburg International Economic Forum (SPIEF) in Saint Petersburg, Russia June 6, 2024. Sergey Kulakov/Roscongress Foundation via REUTERS/File Photo

"The conflict itself in the Middle East, on the whole, was already partly factored in by the price," Novak said.

"The market reacts, first of all, to the fact that supply on the market may decrease as a result of a conflict or military action," he added.

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