Russia’s Military Operation in Syria Could 'Rescue' Global Oil Prices

The Russian military’s engagement in the Syrian conflict could rescue battered crude oil prices, T. Boone Pickens, a US oil tycoon and Chairman of BP Capital Management, said.

Royal Dutch Shell CEO Ben Van Beurden addresses a keynote speech during the World Gas Conference in Paris on June 2, 2015 - Sputnik International
A Farewell to Coal: Shell CEO Foretells Brave New World for Oil and Gas
Pickens, who has spent more than 50 years in the oil and gas business, predicted significant changes ahead for the energy market.

There is a "new sheriff in town" in the Middle East – Russia, Pickens told CNBC.

According to him, Russia has made its most significant move back to the region since 1973.

"They are back, and that is no kidding back," he said.

He assumed that taking into account the current situation Russia could force Saudi Arabia to cut production which would eventually drive global oil prices up.

Oil pump jack - Sputnik International
Russia, Saudi Arabia 'Oil Alliance' to Affect US Energy Companies
CNBC underscored that connecting the dots on how oil prices may be affected by the Russian military operation in Syria is complex, with Russia, Syria and Iran on the one side, and Saudi Arabia, OPEC’s largest oil member, on the other.

Some analysts claimed that Saudi Arabia has been keeping up its oil production to damage the Russian economy. What is more, Riyadh wants to retain its market positions and exert economic pressure on Iran.

Pickens in his turn said now Saudi Arabia might feel compelled to bend to Russia’s will.

As for Friday, global oil prices were rallying on market expectations for an increase in demand. WTI were over $50 per barrel, the first time since July 2014.

To participate in the discussion
log in or register
Заголовок открываемого материала