Bloomberg: Russia has defeated the West in the energy war
In Article by Javier Blas at Bloomberg agency, wrote about the fact that the volume of Russian oil production and its prices in the markets indicate that Moscow has achieved victory in the confrontation in the global oil market.
The article noted that this seems obvious, and can be seen “whatever indicator you use”.
According to Javier Blas article, the first evidence of Russia’s victory in this confrontation is the situation regarding the volume of oil production in Russia.
Last month, that number almost returned to the beginning of the year level, averaging 10.8 million barrels per day, which is just below the 11 million barrels in January”.
July was the third consecutive month of recovery in oil production in Russia,” he said.
The second evidence is the price of Russian oil on the world market.
Initially, Russia was forced to sell oil at huge discounts, but in recent weeks Moscow has regained the possibility of raising prices by taking advantage of the limited supply in the market.
“At least, it appears that energy sanctions are not working at the moment,” the article’s author added.
The article emphasized that the measure of Russia’s recent success is a political measure that has to do with the nature of the market.
According to the article, “In the spring, Western politicians were very optimistic in their expectations that OPEC, led by Saudi Arabia and the UAE, would abandon the alliance with Russia, but the opposite happened.
Shortly after US President Joe Biden’s visit to Riyadh, Russian Deputy Prime Minister Alexander Novak flew there, and a few days later, OPEC + announced only a slight increase in oil production.
“When European sanctions on Russian oil exports come into effect in November, governments in that region will face a difficult choice because the energy crisis will begin to affect consumers and industrial companies,” said Javier Blas.
According to the author of the article, the cold weather with a sharp increase in electricity demand and inflation later this year, may undermine Western support for Ukraine.
