Russian Deputy Prime Minister Alexander Novak (Reuters)
Al Jazeera
Kremlin official threatens to cut Europe’s gas supplies and warns oil prices could top $300 per barrel in the event of a ban on Russian oil.
A top Russian official has warned that a Western ban on Russian oil imports could result in oil prices more than doubling to about $300 per barrel and prompt the closure of the main gas pipeline from Russia to Germany.
In a statement on state television on Monday, Russian Deputy Prime Minister Alexander Novak said it was “absolutely clear that a rejection of Russian oil would lead to catastrophic consequences for the global market”.
“The surge in prices would be unpredictable,” he said. “It would be $300 per barrel if not more.”
The warning came as the United States – seeking to ratchet up the pressure on Moscow over its invasion of Ukraine – said Washington and its European allies were considering banning Russian oil imports.
The White House said US President Joe Biden, who is facing growing calls from US lawmakers to cut off Russia from the money it gets from oil and natural gas exports, discussed the issue during a conference call with his counterparts in France, Germany and the United Kingdom on Monday.
But Biden has not made a decision “at this point”, a spokesperson said.
Western countries have hit Moscow with a wall of sanctions following its assault on Ukraine, with Washington slapping sanctions on exports of technologies to Russian refineries and the Nord Stream 2 that was due to pipe gas from Russia to Germany.
Berlin, which is heavily reliant on Russian crude oil, also froze the certification of that pipeline.
But German Chancellor Olaf Scholz earlier on Monday cautioned against a ban on Russian oil and gas, saying Russian energy imports were “essential” to Europeans’ daily lives.
‘We are ready for it’
Russia supplies 40 percent of Europe’s gas.
It is also the world’s top exporter of crude and oil products combined, with around 7 million barrels per day or about 7 percent of global supply.
Novak, the Russian deputy prime minister, said if Europe were to ban Russian oil and gas, it would take countries on the continent more than a year to replace the volume of oil it receives from Russia and they would have to pay significantly higher prices.
“European politicians need to honestly warn their citizens and consumers what to expect,” Novak said.
“If you want to reject energy supplies from Russia, go ahead. We are ready for it. We know where we could redirect the volumes to.”
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The Most Revolutionary Act 
LOL If demand remains constant and supply remains constant, the price should not increase. That is basic economics. The price increase last year was due to actions taken by O’biden that reduced US supply and increased extration costs.
The current price increase is due to market instability and speculation, and therefore, should be temporary.
However, it is possible that the war is being used by a small cartel which would have to include oil companies in the US and EU in order to extract monopolistic profits and harm the global economy, a goal of the foolish clowns pushing for a great reset. I call them foolish because the aristocracy has been restored in every major country in the world including the U.S., but the fools are too ignorant to know that and too foolish to realize that they are risking their lives and fortunes in an effort which might very well result in their losing their wealth and power.
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I think what Novak is referring to is a situation where the Western market cuts itself off from the Russian oil/gas market, in which case supply will decrease by 40% in Europe with demand remaining constant. That being said, petroleum profits always increase whenever the oil price increases – no matter the reason.
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