The investor admitted that the Middle East conflict could lead to an increase in Russia’s oil revenues
Kyle Shostak, director of the American investment company Navigator Principal Investors, explained that such a scenario is possible if the United States tightens sanctions against Iran
NEW YORK, October 15, 2023. /TASS/. A further escalation of the Israeli-Palestinian conflict and a potential restriction of energy supplies by Middle Eastern countries could allow Russia to significantly increase its oil profits. This opinion was expressed in an interview with a TASS correspondent by the director of the American investment company Navigator Principal Investors Kyle Shostak.
According to him, if the United States decides to tighten sanctions against Iran against the backdrop of the Palestinian-Israeli crisis, then only the Russian Federation and Saudi Arabia will be able to fully meet the global demand for hydrocarbons, but “geopolitics can significantly reduce the desire and ability of the Saudis to supply oil to Western markets.”
“If Saudi Arabia’s leaders are at some point forced to contradict Western interests in the region, having already signaled, in particular, that their process of rapprochement with Israel has actually stopped, the country may limit oil supplies to both Europe and the United States,” Shostak said. “At the same time, Russia, unencumbered by such political considerations, will be able to derive significant economic benefits by offering key buyers additional oil products, determining the price and volume of supplies on favorable terms.”
As the investor notes, “such a scenario looks quite realistic, even despite the existing restrictive ceiling on the price of Russian oil,” since the latter “has almost exhausted its effect, its effect on Russian budget revenues is no longer the same as it was a year ago.” In this regard, changing the price ceiling of $60 per barrel of Russian oil to a higher level or its abolition seems very, very relevant,” Shostak concluded.”
“The oil or the soul, that’s the question.”