Oil Prices Beyond $100 Per Barrel Could Lead to Market Collapse – Lukoil Head

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File photo taken on March 12, 2019 shows operating oil pumps in Luling of Texas, the United States. U.S. oil prices turned negative on April 20, 2020. West Texas Intermediate crude for May delivery shed more than 300 percent to settle at -37.63 U.S. dollars per barrel on the New York Mercantile Exchange. (Xinhua/Wang Ying)
File photo taken on March 12, 2019 shows operating oil pumps in Luling of Texas, the United States. U.S. oil prices turned negative on April 20, 2020. West Texas Intermediate crude for May delivery shed more than 300 percent to settle at -37.63 U.S. dollars per barrel on the New York Mercantile Exchange. (Xinhua/Wang Ying)

The head of Russian energy giant Lukoil, Vagit Alekperov, warns of a market crash in case oil prices rise above $100 per barrel.

“I would not want to see oil prices above $100 per barrel again, as this can stimulate investments in low-profit, ineffective projects and then again lead to what we have already experienced – a market collapse,” Alekperov told the Russian Kommersant newspaper.

He added that a price of $65-75 per barrel is favorable for consumers and OPEC+ countries are set on maintaining that level by regulating production volume.

Last week, the OPEC+ countries confirmed their adherence to the previously agreed plan and said they would increase oil production by 400,000 barrels per day in October.

Russian Deputy Prime Minister Alexander Novak said last Wednesday that Russia was going to increase oil production by 100,000 barrels per day next month.

The current price of November futures for Brent crude oil is approaching $73 per barrel.

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