Russia's Novak believes that oil volatility is easing despite Middle East turmoil

Alexander Novak, Russian Deputy Premier Minister, told Al Arabiya News that he expects the volatility in oil prices to subside after the Middle East tensions have triggered it. Geopolitical risk has already been factored into the price fluctuations.

Novak, who oversees the Russian economy as a whole, has said that the economy is still suffering from sanctions and will withstand any pressure or price cap imposed by the West on oil.

Novak said in an interview with Al Arabiya News published on Monday that "we can live through any cost".

The oil prices continued to rise on Monday. This was boosted by the escalating concern over possible supply pressures coming from Middle East producers after Israel increased its attacks against Iranian-backed forces.

Novak, in response to an inquiry about the murder of Hezbollah's Sayyed Hassan Nasrallah, was quoted saying: "The events that are occurring in the Middle East right now definitely affect the market."

Novak, a journalist at the outlet, said that prices had been volatile in recent weeks. He added, "I believe things will return to normal."

Brent oil futures dropped by 3% last week while U.S. West Texas Intermediate fell by 5%. This was due to increased demand concerns after China, the second largest economy in the world and its top oil importer failed to reassure markets.

Novak stated that Russia would continue to cooperate with the Organization of the Petroleum Exporting Countries, or OPEC, beyond 2025. This is when the current agreement on oil production curbs for the expanded group called OPEC+ will expire. Reporting by Lucy Papachristou, Writing by Mark Trevelyan, and Editing by Jamie Freed.

(source: Reuters)