TYUMEN (Pakistan Point News / Sputnik - 17th September, 2019) Oil prices may surge to $100 per barrel on the news of an attack in Saudi Arabia, but unlikely to stay this high for long, President of Russia's Russneft company Evgeny Tolochek said Tuesday.
"There's a lot of talking, but in reality, we only see $67 per barrel. For now, it [the price] is not really striving to rise," Tolochek told reporters on the sidelines of an oil and gas forum in Tyumen, when asked on his opinion about possible price hike.
He remarked that the company was still planning for $65 per barrel and expected the prices to eventually get back to this level.
"This [news on the attack] will definitely spur on the market ... What happens next, I do not know. Even if the price reaches [$]100, it won't be for long. And then there will likely be recession, and we will plunge toward [$]50 [per barrel] again," Tolochek said.
Saudi Arabia has said that Saturday's attack more than halved its daily oil output.
The Yemeni Houthi movement claimed responsibility for the drone attack. Saudi Arabia is leading a coalition of states that back the Yemeni government against Houthis.
However, the United States has suggested that Iran may have been behind the attack. Tehran has refuted the allegation.
