Putin believes OPEC+ action not needed amid Iran-Israel tension
No OPEC+ action needed amid Iran-Israel conflict, says Putin on oil market On Friday, Russian President Vladimir Putin stated that the conflict between Iran and Israel had not led to a significant rise in oil prices, asserting that there was no necessity for the OPEC+ group of oil producers to take action in the oil markets. Oil prices have surged as a week-old air conflict between Israel and Iran intensified, while uncertainty regarding potential US involvement has left investors apprehensive, with Brent crude futures reaching their highest levels since late January.
Putin stated that the current price of oil is approximately $75 per barrel, compared to $65 prior to the escalation of the conflict. “Of course, we observe that the present circumstances in the Middle East, particularly regarding the conflict between Iran and Israel, have resulted in a notable rise in prices.” “But this increase, in the opinion of our experts, is not significant,” Putin told the St Petersburg Economic Forum.
Iran ranks as the third largest producer within the Organization of the Petroleum Exporting Countries. Hostilities may impede the supply of oil, consequently leading to a rise in prices. Putin also stated that OPEC and its allies, including Russia—a coalition referred to as OPEC+, which is responsible for approximately half of the global oil supply—were incrementally raising oil production to maintain equilibrium in the oil market and achieve “comfortable” prices. “We will all observe collectively how the situation develops. “So far no immediate response is required,” he said.
