Saturday, May 28, 2022
Home Business News OPEC: There is no substitute for Russian oil

OPEC: There is no substitute for Russian oil

Sanctions on Russian energy could be catastrophic.

The Secretary-General of the Organization of the Petroleum Exporting Countries (OPEC) Mohammed Barkindo warned EU officials on Monday that current and future sanctions could cause one of the most significant oil supply shocks in history.

He explained that about 7 million barrels of Russian crude oil per day are “going out” from world markets due to embargoes and other restrictions on Russian trade.

The OPEC official also told the EU that the current volatility in the market was due to “non-fundamental factors” beyond OPEC’s control. The EU is responsible for promoting a “realistic” approach to the energy transition.

The bloc has announced plans to join the US and UK in implementing an embargo on Russian energy products. However, unlike the US and UK, the EU imports most of its energy supply from Russia, and experts have warned that attempting to cut supply could lead to dire outcomes.

In particular, Germany is concerned about the risk of collapse of its entire industry when there is a shortage of Russian energy. At the same time, the head of the Austrian energy giant OMV has stated that his country will not be able to give up buying Russian gas.

While the US has promised to step up and fill the shortfall with its more expensive liquefied natural gas (LNG) exports, most of Europe’s LNG terminals are already operating at total capacity, which means there will be no more room to store fuel. Other countries are eager to use this crisis as an opportunity to promote the development of renewable energies.

However, last week, the European Parliament requested an immediate and total embargo on Russian oil, coal, natural gas, and nuclear fuel imports. Some countries, such as Hungary and Slovakia, have explicitly stated that they plan to bypass the ban in self-protection. Meanwhile, several other countries have warned their citizens to tighten their belts and get ready for tough times ahead.

Oil and gas are not the only commodities affected by the conflict in Ukraine. Russia and Ukraine produce about a third of the world’s wheat exports, and both countries are also significant exporters of sunflower oil and fertilizers. As a result, food prices have reached historic highs, and many governments and NGOs are warning of food shortages shortly.

RELATED ARTICLES

Culture shock when switching from Facebook to TikTok for work: Each meeting has more than 200 attendees, working from 9am to 9pm, 6 days...

What secret did Tiktok use to make Facebook and many Western technology giants afraid? According to Business Insider, more and more American engineers in Silicon...

Elon Musk: ‘I didn’t buy Twitter to make money’

Elon Musk said that he bought Twitter for the future of human civilization, not to get rich and making money. When asked about the offer...

What is the ‘poison pill’ and does it help Twitter at this time?

Twitter has just taken a "poison pill" to try to prevent billionaire Elon Musk from taking over this social network. In the past, the...

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

Hướng dẫn chạy StepN

1.Chuẩn bị chạy Cần chuẩn bị smartphone có game StepN đã mua giầy. Có kết nối 4GP Nên test tốc độ để chắc chắn mình đạt...

Top 3 NFT games worth playing in May 2022

Long gone are the days when gaming equated to holing up on the couch with nothing better to do. Blockchain technology and NFTs have...

Culture shock when switching from Facebook to TikTok for work: Each meeting has more than 200 attendees, working from 9am to 9pm, 6 days...

What secret did Tiktok use to make Facebook and many Western technology giants afraid? According to Business Insider, more and more American engineers in Silicon...

Elon Musk: ‘I didn’t buy Twitter to make money’

Elon Musk said that he bought Twitter for the future of human civilization, not to get rich and making money. When asked about the offer...

Recent Comments