Russian tycoon predicts oil price crash

Crude will shed 20% of its value this year, Oleg Deripaska warns

Global oil markets are heading for a crash that will slash 20% off of the crude price this year, Russian businessman Oleg Deripaska predicted on Tuesday.

The tycoon’s warning comes after oil prices fell by about 4% on Monday on sharp price cuts announced by top exporter Saudi Arabia for exports in February. Oil has since rebounded, with the WTI benchmark trading at $72 per barrel, and Brent at $77.4 as of 14:00 GMT on Tuesday.

“Cheaper oil, which will fall by another 20% on the global market this year, will be a good help in fighting inflation,” Deripaska wrote on his Telegram channel on Tuesday.

The aluminum magnate also referred to a report in the Financial Times that said that steady growth in oil supply from countries outside the OPEC+ group, specifically the US, and an uncertain economic outlook are expected to keep a lid on the price of crude this year.

READ MORE: Top oil exporter cuts prices – media

EU countries along with the US and Russia have been grappling with high inflation over the past two years. The rising prices have compelled central banks to embark on a rate-hike campaign that helped contain price growth in 2023, although the Eurozone saw annual inflation rebound in December, according to preliminary estimates.

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