PNN – The head of Russia’s Rosneft announced that the oil shortage caused by the war against Iran and the blockage of the Strait of Hormuz cannot be compensated.
According to the report of Pakistan News Network, citing Russia Today, Igor Sechin, head of the Rosneft oil company, said at the St. Petersburg International Economic Forum: In the current situation, no country is able to compensate for the 16 million barrels of oil per day that have been removed from the global market as a result of the West Asian crisis.
Earlier, Philip Mushilbilly, Secretary General of the Gas Exporting Countries Forum (GECF), emphasized that the gas situation in the Middle East is critical because as a result of the closure of the Strait of Hormuz, about 20 percent of the supply of liquefied natural gas (LNG) has been removed from the market.
Speaking at the St. Petersburg International Economic Forum (SPIEF), he added that the overall market situation this year will depend on the timing of the opening of the Strait of Hormuz. He predicted that by the end of this year, gas supplies will decrease by between 1.7 and 4.1 percent, and this directly depends on the timing of the opening of the strategic passage.
Mushilbila noted that the impact of this situation will not be limited to liquefied natural gas and gas, but will also include supplies of helium and chemical fertilizers, which will affect developing countries.
He added that this year will be particularly difficult, given the decline in agricultural production in many countries, and its economic consequences will be widespread and pervasive.