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Oil price may rocket to $300 per barrel if Russian supplies rejected, Novak predicts

Russian Deputy Prime Minister noted that Russia in that case would diversify oil deliveries from the West to the East, creating new logistics chains

MOSCOW, March 21. /TASS/. The price of oil may skyrocket to $300 per barrel with an unlikely scenario of Russian supplies being rejected, Russian Deputy Prime Minister Alexander Novak said on Monday.

"A complete rejection? In the event of a rejection, the oil price would be $300 [per barrel], I’m telling you, some even say $500 [per barrel]," he said.

Meanwhile, Novak noted that Russia would diversify oil deliveries from the West to the East, creating new logistics chains. This is something that Russian oil companies are already tackling, he noted. "If oil is sold at a discount, it will probably be sold today. Perhaps, we will earn less. We will do our best not to reduce [exports]," the Russian Deputy PM vowed.

Europe cannot fully turn down Russian hydrocarbons now because there is nothing to substitute Russian oil, Novak believes.

"This is definitely impossible right now. Later on anything may be announced. The same goes for oil, Russian oil cannot be replaced now," he explained. "If there is no other way, we will diversify supplies towards Asian markets, the market growth rates there are higher than average global rates," Novak added.