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9 Jan, 2024 14:28

Russian tycoon predicts oil price crash

Crude will shed 20% of its value this year, Oleg Deripaska warns
Russian tycoon predicts oil price crash

Global oil markets are heading for a crash that will slash 20% off of the crude price this year, Russian businessman Oleg Deripaska predicted on Tuesday.

The tycoon’s warning comes after oil prices fell by about 4% on Monday on sharp price cuts announced by top exporter Saudi Arabia for exports in February. Oil has since rebounded, with the WTI benchmark trading at $72 per barrel, and Brent at $77.4 as of 14:00 GMT on Tuesday.

“Cheaper oil, which will fall by another 20% on the global market this year, will be a good help in fighting inflation,” Deripaska wrote on his Telegram channel on Tuesday.

The aluminum magnate also referred to a report in the Financial Times that said that steady growth in oil supply from countries outside the OPEC+ group, specifically the US, and an uncertain economic outlook are expected to keep a lid on the price of crude this year.

EU countries along with the US and Russia have been grappling with high inflation over the past two years. The rising prices have compelled central banks to embark on a rate-hike campaign that helped contain price growth in 2023, although the Eurozone saw annual inflation rebound in December, according to preliminary estimates.

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