According to him, speculation always finds loopholes to break through. He does not expect there to be a significant price drop, but rather a freeze.
“I expect the trend for low oil prices to continue at least until the end of the year — that is, until the US presidential elections,” the former Deputy Minister stressed.
He said that because of COVID-19, the oil consumption of China and South Korea, which are the biggest buyers from Saudi Arabia, fell 20%, and Russia's decision not to reduce output by 500,000 barrels per day unleashed the oil war.
“Suffered by this will be Russia, whose production capacity is 41-42 dollars per barrel. In Saudi Arabia, it's 6-7 dollars a barrel. The difference is so big. US shale companies will also suffer,” he added.
Keremedchiev believes that in the United States, big oil companies can combine efforts to buy out small ones. In addition, he is of the opinion that low oil prices are helping in the battle for the White House.
Expert: I expect a freeze in fuel prices, no decline
It is logical in our country not to expect fuel prices to fall as in other countries, as we buy oil from Russia. Let's not expect in times decline. The reduction will be rather percentage, former Deputy Foreign Minister Milen Keremedchiev told bTV.tags:
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