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    Sanctions Policy May Lead to Record High Oil Prices - Rosneft CEO

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    St. Petersburg International Economic Forum 2018 (64)
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    ST. PETERSBURG (Sputnik) - The policy of sanctions and ultimatums being used in the oil and gas markets may lead to commodity "super-cycles" — decades-long periods when the price of a certain commodity spikes and then falls — and record high oil prices, Russian energy giant Rosneft CEO Igor Sechin said at the SPIEF on Friday.

    "The policy of sanctions and ultimatums applied to hydrocarbon markets cannot but lead to a permanent 'sanctioning bonus' in price. I do not exclude the possibility that later we will talk about sanctions-related commodity 'super-cycles' and we will see new price records in the near future," Sechin said.

    According to Sechin, Rosneft sees no threats from demand-related factors for the development of the world oil market, as the global economy still has large sectors — aviation, water freight road transport as well as petrochemicals — where oil consumption is growing. The latter is expected to significantly contribute to the increase in demand for petroleum products.

    READ MORE: US Iran Sanctions May Limit Iran's Oil Sales Up to 1Mln Barrels Daily — BP Chief

    Russia has been living under EU and US sanctions that target the energy sector, among others, since 2014 over Russia's alleged meddling in the Ukrainian conflict, which Moscow has repeatedly refuted. Since then, new rounds of sanctions targeting Russian officials, businessmen and companies have been introduced on several occasions.

    The St. Petersburg International Economic Forum (SPIEF), held annually in Russia's second largest city of St. Petersburg, is a major global platform for communication between business representatives and the discussion of crucial economic issues. The event began on Thursday and will continue through Saturday. 

    Sputnik, a multimedia international news and information agency, is the official media partner of the forum.

     

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    St. Petersburg International Economic Forum 2018 (64)

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    St.Petersburg International Economic Forum, Rosneft, Igor Sechin, Russia
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