That was his reaction to the G7-led push in the International Energy Agency to release 400M barrels of crude from strategic reserves to stabilize global energy markets and ease soaring prices, and do so without broadly lifting existing sanctions on Russian oil.
“The Americans are trying to create the illusion that they’re easing sanctions against Russia so that the market will react with lower prices.” The same is true regarding Iranian oil and a sanctions loophole regarding crude loaded on tankers, and Venezuela – where plans to dramatically increase production would need billions in investments and years to realize.
“On the whole, the measures the Americans are announcing are an attempt to psychologically influence the market, and nothing more,” Yushkov explained.
In reality, these countries began tapping their reserves a week before the IEA’s announcement, Yushkov says. “Any information about those reserves being depleted will push prices up…That’s why they’re trying not to dwell on the issue of how they’ve already withdrawn and how much more they can withdraw in the future.”
“Again, it’s not about saturating the market. No one is going to share this oil with one another. This is oil they’re going to consume themselves, locally, from their own reserves. That’s it. And the more they withdraw today, the more they’ll need to buy to pump up those same reserves in the future,” Yushkov summed up.