The oil market is currently sufficiently supplied, there is no physical shortage, OPEC Secretary-General Mohammed Barkindo said in an interview with Bloomberg TV channel. According to him, the high volatility in oil prices is caused primarily by investors' fears that Russia, as the world's second-largest hydrocarbon exporter, will fall under sanctions because of the military operation in Ukraine.
"I can assure you this morning that there is no shortage of oil right now. But there is a very strong perception in the market that Russia is the world's second largest hydrocarbon exporter. Imagine the market's concern about who would replace more than 7 million barrels per day of oil if sanctions were imposed on Russian exports. But this is only a perception of the situation so far, some kind of projections. At the moment there is enough supply in the market," he said when asked if the oil price forecast above $150 per barrel was realistic.
Barkindo also said he was in constant contact with Russian Deputy Prime Minister Alexander Novak, who assured him that Russia continues to participate in the OPEC+ agreement and meet its oil supply obligations.
At the same time, the OPEC Secretary-General admitted that not all countries of the organization at the moment can fully comply with the agreements on the restoration of oil production, as "the spare production capacity in OPEC is shrinking very quickly".
The price of Brent crude oil was above $130 a barrel as of the morning of March 9. The sharp rise in oil prices is observed against the backdrop of the worsening geopolitical situation in the world. On the news of the start of Russia's military special operation in Ukraine in late February, oil broke through the mark of $100 per barrel and has been rising ever since. Russian President Vladimir Putin called the goal of the military operation in Ukraine the denazification and demilitarization of the country. At the same time, he assured that Russia would not occupy Ukrainian territory and civilians would not be harmed.
GSV "Russia - Islamic world"
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Based on materials from TASS