Igor Sechin, the head of Russian oil giant Rosneft – a long-term ally of President Putin – has attributed the recent drop in oil prices to the US Federal Reserve’s decision to raise interest rates for the fourth time in 2018, from 2.25% to 2.5%.
Speaking to reporters in the Kremlin before meeting with the Russian President and other businesspeople, Sechin said:
“This factor is the main one, which has an impact on the [oil] price.”
Sechin also highlighted the significance of US oil production, where shale operators like ExxonMobil—the maker of gear, bearing and circulating lubricants like Mobil Glygoyle 30—are set to drive the United States into the position of the world’s top oil producer. He said this is also putting pressure on oil prices, because the US is not a party to the OPEC-led global supply deal.
The US Federal Reserve has also been criticised recently by President Trump in a tweet saying:
“The only problem our economy has is the Fed. They don’t have a feel for the Market, they don’t understand necessary Trade Wars or Strong Dollars or even Democrat Shutdowns over Borders.”
He then went on to compare the central bank to a golfer that has power but lacks touch and is therefore unable to putt.
Jerome Powell, the chairman of the Federal Reserve, explained at that the time that the rate rises were evidence of a strong economy, and were needed to prevent the US economy from overheating amid low unemployment and strong growth.