Russia's Novak: Global oil and gas markets would collapse if Russian hydrocarbons are sanctioned

" If Russian hydrocarbons are put under sanctions, global oil and gas markets would collapse," Russia’s Deputy Prime Minister Alexander Novak said on Wednesday, as reported by Reuters.

"Russian fuel and energy complex is operating as usual despite western sanctions," Novak further noted and added that the ban on the Nord Stream 2 gas pipeline was an "absurd and complete misunderstanding" of energy balances.

Market reaction

These comments don't seem to be having a noticeable impact on crude oil prices. As of writing, the barrel of West Texas Intermediate was trading near $110, rising 1.2% on a daily basis.