Anastasia Levchenko, Researcher of the Industrial Organization and Infrastructure Economics Department at the Gaidar Institute, commented for TASS on the situation at the global oil market amid the Iranian conflict.
According to the expert, the main factor for stabilizing the market remains the safety of navigation in the Strait of Hormuz and the return of oil volumes from Saudi Arabia, Iraq, and the UAE. Buyers are looking for alternatives to Middle East oil, however, strategic reserves are not infinite.
"Until this happens, the oil market will remain extremely volatile. Current prices around $100 likely reflect a temporary balance between shortage fears and IEA interventions, but fundamentally the situation remains extremely tense," said Anastasia Levchenko.