It is currently impossible to suspend investment in new oil production projects as the price will otherwise reach $200 per barrel, Deputy Prime Minister Alexander Novak said at the St. Petersburg International Economic Forum on Thursday.
“I cannot imagine a situation, for example, where investments in new projects are suspended starting tomorrow. What comes next? The oil price will probably reach $200 [per barrel],” he said.
Moreover, Novak expects volatility to intensify on the oil market. “We have to be more responsible regarding any proposals being made in this respect,” he noted.
The International Energy Agency suggested earlier that new mineral production projects be abandoned in a move to tackle the global warming, and drafted a respective plan to reach carbon neutrality through 2050.
The St. Petersburg International Economic Forum, organized by the Roscongress Foundation, is taking place on June 2-5. The topic of this year’s forum is “Together Again – Economy of New Reality”.