Putin Warns Against Lower Oil Prices, Citing Risks for Both the U.S. and Russia
Russian President Vladimir Putin on Friday praised Donald Trump as “pragmatic” and “smart,” saying he did not believe the US president would force global oil prices lower in a bid to damage Moscow.
In a significant statement on global energy markets, Russian President Vladimir Putin has cautioned that lower oil prices could harm both the United States and Russia, underscoring the critical role of stable pricing for the global economy. The remarks highlight the shared interests of two of the world’s largest oil producers, despite their geopolitical differences.
Putin’s comments come as global oil markets remain volatile, with fluctuations driven by shifting supply-demand dynamics, geopolitical tensions, and energy transition policies. Russia, as a leading oil exporter, relies heavily on energy revenues to sustain its economy, while the United States, a major producer of shale oil, also has a vested interest in maintaining prices at levels that support domestic production.
“Lower oil prices would be bad for both the U.S. and Russia,” Putin stated, emphasising the mutual dependency of major producers on a balanced market. He pointed to the potential consequences of a price collapse, including reduced investments in exploration and production, job losses in the energy sector, and economic instability in oil-dependent regions.
The statement underscores the paradox of competition and cooperation in global energy markets. While Russia and the United States often find themselves at odds politically, their shared reliance on a healthy oil industry aligns their economic interests in certain respects. Both countries have previously participated in indirect coordination through OPEC+ agreements, which aim to stabilise markets by managing production levels.
Putin’s remarks also reflect broader concerns about the global economy, with energy prices playing a critical role in inflation, trade balances, and geopolitical stability. A sharp decline in oil prices could trigger economic disruptions, particularly for nations heavily reliant on energy exports.
As the world transitions toward renewable energy sources, the challenge of maintaining stable oil markets becomes increasingly complex. Putin’s statement suggests that, despite political divides, energy market stability remains a common goal for producers like Russia and the United States. The remarks serve as a reminder of the interconnected nature of global energy markets and the need for pragmatic approaches to address shared challenges.
“He is not only a smart person, but a pragmatic person,” Putin told state media. He said oil prices that were either “too high or “too low” were bad for both the Russian and American economies, adding: “I have a hard time imagining there will be decisions taken that are detrimental to the American economy.”