Price Factors in The World Hydrocarbon Market
https://doi.org/10.48137/2687-0703_2021_13_1_6
Abstract
The role of oil ang gas sector in the Russian economy remains significant despite the growth of other sectors. Thus, monitoring the price environment remains a priority task.
The article shows the reduction of the OPEC’s role in influencing world energy prices. The author also studies the mechanisms of for hydrocarbons price formation in the world markets and factors influencing its change, from the point of view of maintaining the budgetary balance in key oil exporting countries, including the Russian Federation. Over the past year, the situation has undergone significant changes caused by the pandemic of the new coronavirus COVID-19. The restrictions introduced at the beginning of the year by a number of countries significantly reduced the demand for hydrocarbons. The largest cuts occurred in China, one of the largest consumers of oil and petroleum products. At the same time, OPEC+ negotiations in March failed. One of the reasons for the controversy was the socalled «free rider effect». The shale oil producers from the United States were the «free riders» in this particular case as they do not participate in the OPEC agreement, and therefore freely use the reduction in production in other countries for expanding their own market. The combined influence of these two factors led to an unprecedented shock in the oil market.
The article also examines the role of the fiscal rule in reducing the dependence of the main Russian macroeconomic indicators on world energy prices.
Keywords
About the Author
I. S. Krishtal
Plekhanov Russian University of Economics
Russian Federation
Russian Federation
Igor S. Krishtal, Candidate of Economic Sciences, Associate Professor of the Department of Political Economy and History
36, Stremyanny lane, Moscow, 117997
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Review
For citations:
Krishtal I.S. Price Factors in The World Hydrocarbon Market. Geoeconomics of Energetics. 2021;(1):6-13. (In Russ.) https://doi.org/10.48137/2687-0703_2021_13_1_6
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