Japanese expert spoke about the risks of high oil prices

Japanese expert spoke about the risks of high oil prices

Toshihiro Sugiura: high oil prices hurt national interests

High oil prices are equally harmful to the interests of both producing and consuming countries of this raw material, and the optimal price is around $ 60 per barrel, Toshihiro, a researcher at the Institute for Economic Research of North Asia (ERINA) in Japan in the field of oil and gas, told RIA Novosti. Sugiura.

“Maintaining a high level of oil prices will be a disadvantage for the world, Japanese and Russian economies. An important point is that high oil prices are detrimental to the national interests of both oil-producing countries and consumer countries,” – said the expert.

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“In the short term, this brings profit to the producing countries, but in the medium and long term, it turns oil into ineffective assets. Namely, the persistence of high oil prices makes them look for other sources of energy to replace oil. That is, the producing countries will have to leave it under the earth has huge reserves of oil, and the era of oil will come to an end, “he explained.

Sugiura recalled the words of the former Minister of Oil and Mineral Resources of Saudi Arabia, Ahmed Yamani, who held this post from 1962 to 1986: “The Stone Age did not end because the stones ran out.” “So that the specialists of the next generations cannot say that“ the era of oil is not over because oil has ended, ”it is necessary that prices for it satisfy both producers and consumers. I believe that such a price is in the range of $ 50-60 per barrel. “, the expert emphasized.

He warned that maintaining high prices could only accelerate the process of ditching oil and finding other sources of energy. “The current megatrend of decarbonization is already being perceived as ‘abandoning fossil fuels.’ I do not think that the demand for oil will drop to zero in the future, but it is certain that the demand for oil will gradually decline. High oil prices will only accelerate this process.” – said the scientist.

Japanese expert spoke about the risks of high oil prices
Japanese expert spoke about the risks of high oil prices

In his opinion, the optimal price for both producers and consumers is around $ 60 per barrel. “At a price of about $ 60 per barrel, the Russian budget for 2022-2024 will be implemented, and I don’t think that Russia will be deprived of anything at these prices. will provide stable prices for goods and stability in the economy. If the current oil prices gradually decrease and stabilize at the level of plus or minus $ 60, it will definitely be beneficial for both producing and consuming countries, “Sugiura said.

The lack of its own mineral resources makes the Japanese economy rigidly dependent on world energy prices. The Japanese government is already seriously concerned about the rise in world oil prices and retail gasoline prices in the country.

Now the price of gasoline with an octane rating of up to 96 hovers around 169 yen (approximately $ 1.48) per liter. The highest price in the last 13 years was 170 yen per liter. According to the decision of the Ministry of Economy, Trade and Industry, if retail prices for gasoline exceed this mark, refineries will be paid 5 yen per liter from the end of December this year to the end of March next year. According to the ministry, this should help contain the rise in gasoline prices.

Source: BBC

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