Russia’s Novak Highlights Market Concerns Over Oil Supply Cuts Amid Middle East Conflict – Reuters

Moscow – Oil Prices Rise Amid Middle East Conflict

Russian Deputy Prime Minister Alexander Novak stated on Wednesday that oil prices have surged due to market concerns over potential declines in oil supply stemming from ongoing conflicts in the Middle East.

During televised remarks following a meeting of top OPEC+ officials, who decided to maintain their oil output policy with a plan to gradually increase production starting in December, Novak emphasized that the current pricing trends reflect these geopolitical tensions.

After dropping below $70 a barrel in September for the first time since 2021, oil prices have rebounded to above $75. This increase is largely attributed to worries that Iran’s military actions against Israel could disrupt oil production in the region.

"The conflict in the Middle East has already been partially accounted for in the price," Novak noted. He further explained, "The market responds primarily to the potential for decreased supply due to conflict or military actions."