Oil Prices Soar Again Amid Middle East Conflict
Oil prices have hit record highs again, reaching $114 per barrel for Russian Urals crude oil as of September 25. This is higher than the previous peak in spring this year when prices exceeded $110 per barrel. Gas prices have also risen significantly, trading at $850-900, up from around $700 just a month ago.
BEROC expert Nastassia Luzgina notes that while high oil and gas prices are beneficial for Russia's economy, the current situation is different from the spring peak. Damage to Russian oil refineries has negatively affected trade and the economy as a whole, with Russia now forced to purchase petroleum products at high prices from other countries.
Luzgina points out that the conflict in the Middle East plays into Russia's hands because Ukraine would still strike Russian oil refineries regardless of the situation in Iran. High oil and gas prices compensate for these losses, making it an important factor for the Russian economy despite inflation problems and other issues.