Oil hits $70 a barrel, Energy Ministry discusses new round of superprices
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Oil prices climbed to the psychological plateau of $70 a barrel and analysts said the rise was prompted by expectations of increased demand for aviation fuel in most European countries.

Over the course of the day, the price underwent a correction to $68.80 but analysts forecast further rises.

    Against this market background, Russia’s Energy Ministry raised the issue of a possible new round of price rises for energy commodities.

    “Not all the fears expressed last year actually came to pass. Prices have passed through the mood of panic experienced last spring and have risen considerably and stabilised at a relatively high level despite continuing problems with demand,” Sergey Mochalnikov, director of the ministry’s Department of Foreign Economic Cooperation and Development of Fuel Markets, told the conference “Managing Energy Risks 2021”.

    “All the more so, in recent months, an active discussion has been going on about a possible new price supercycle on commodity markets. This issue is certainly under discussion and the fact it has been raised is a clear indicator.

    Mochalnikov said the Covid pandemic had given rise to an active discussion of a forthcoming peak for demand for coal and oil.    “I am afraid that in this instance, and during any sharp economic downturn or upswing, unjustified extrapolation is taking place of current trends and long-term prospects. We have witnessed many times such erroneous or hasty judgments.

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