An expert warned of the repercussions of high oil prices on the markets, and said that the rise of a barrel of oil to the level of $120 a barrel and its staying at this level for a long time will lead to a collapse in the markets.
The expert, Alexander Timofeev, assistant professor of economics at the Russian Plekhanov University of Economics (Moscow), said that keeping oil prices at the level of 120 dollars per barrel for a long period of time will lead to further development of oil fields, which will contribute to the formation of a surplus in the oil market and over time the collapse of this market.
The expert suggested a rise in oil prices in the short term to the level of 150 dollars or even to 200 dollars a barrel, noting that the participants in the oil market will create conditions for the balance of supply and demand in order to return the market to 95-100 dollars.
Oil prices are rising in light of the conditions related to Ukraine, and Brent crude futures rose today above the level of $ 118 a barrel, which is the highest level since February 2013.