Rise in oil prices is expected in Sweden due to Russia’s response to sanctions

Russia is to ban the supply of its crude to a range of European countries which agreed to the price cap on Russian oil. As it was stated on Tuesday by Christian Kopfer, equity research analyst at Handelsbanken, the oil price might increase significantly for the Europeans due to this fact.

According to the expert’s opinion, European nations will have to purchase fuel from other suppliers, and this process is going to have its impact on pricing. As Kopfer said in an interview with the Swedish TV channel SVT, he is also concerned by Russia’s intention to reduce oil production. As Russia is still an important player of the global oil market, this decision might also affect the prices.

He also added that the oil prices are increasing due to a growth in global oil consumption combined with the fact that investment in production is declining.

An embargo prohibiting imports of seaborne Russian oil to the European Union was implemented on December 5. After that, Russia’s President Vladimir Putin signed a decree in response to a Western price cap.