Russia’s Novak Anticipates Easing Oil Price Volatility Amid Middle East Turmoil, Reports Reuters

MOSCOW (Reuters) – Russian Deputy Prime Minister Alexander Novak believes that fluctuations in oil prices will stabilize following recent volatility triggered by tensions in the Middle East, as geopolitical risks are already accounted for in the market. Novak, who oversees the wider Russian economy, assured that the sanctions-affected economy can withstand any pressure, including the Western-imposed price caps on Russian oil.

"We can live through any price," Novak stated in an interview quoted by Al Arabiya News.

On Monday, oil prices saw an increase, driven by growing concerns about potential supply disruptions from Middle Eastern producers in light of heightened Israeli attacks on Iranian-backed forces in the area.

"The current events in the Middle East are certainly impacting the market," Novak remarked, referring specifically to the situation following the killing of Hezbollah leader Sayyed Hassan Nasrallah.

He acknowledged that oil prices have been volatile in recent weeks but expressed optimism: "I believe things will return to normal."

Recently, oil prices dropped approximately 3%, while U.S. West Texas Intermediate futures fell about 5%, as concerns over demand grew after China’s fiscal stimulus failed to instill confidence in the market.

Novak also indicated that Russia intends to continue collaborating with the Organization of the Petroleum Exporting Countries (OPEC) beyond 2025, which is when the existing oil output curbs agreement by the expanded group known as OPEC+ is set to expire.