He was asked to comment on the words of LUKOIL co-owner Leonid Fedun, who called the catastrophic oil price below $ 25 per barrel.
Sorokin called Fedun a professional whose opinion is based on his experience.
“But I would like to disagree here ... The oil market is not a market in the moment. Yes, the price today, within a week or two, is very important, and a drop in prices to such a level, of course, in the moment can lead to great consequences, ”he said.
As Sorokin emphasized, the oil market as a whole is cyclical.
“Therefore, looking at the price today at $ 25 is, let’s say, that makes it impossible to plan for the long term, to make plans for our five-seven-year cycles. Therefore, the price of $ 25 today does not mean that it will be so in two to three months, ”he said.
According to him, if quarantine measures are completed in some countries, the market will recover.
“As soon as this begins, as soon as the market sees the first indicator of demand recovery, then it will begin to think more fundamentally. Now the market is in a panic, the price is in a panic mode ... $ 25 is unpleasant ... This is not a disaster. If such a price lasts two or three years, this will create big problems. But even for six months or a year, such a price is, let’s say, this is the price level that we can withstand, ”he added.
Earlier, Fedun called the disastrous price of oil, which previously fell to $ 25 per barrel.
The Kremlin, commenting on such a statement, noted that we are talking about a very unpleasant pricing environment, but one cannot agree that this is a disaster for Russia.
The price of May futures for North Sea Brent crude oil during trading on March 27 fell by 5.96% to $ 24.77 per barrel.