The balance of supply and demand in the hydrocarbon market is changing due to the conflict in the Middle East. This will lead to a new stable price reality, Russian President Vladimir Putin said at a meeting, the main topic of which was the situation on the world oil and gas market.
„The change in the balance of supply and demand for hydrocarbons will, of course, lead to a new stable price reality. This will inevitably happen,“ he said.
„World oil prices are rising, we clearly see this. "In the last week alone, they have increased by over 30%," the head of state noted.
Restoring liquefied natural gas production in the Middle East will take months. “Liquefied natural gas supplies from the Middle East have decreased sharply“, the president said.
“It is impossible to quickly compensate for the lost volumes“, the head of state noted. “As a result, world gas prices are also rising - in my opinion, even faster than oil prices.“
The disruptions in oil and gas supplies due to the conflict in the Middle East affect the entire system of international economic relations. Russian President Vladimir Putin made the remarks at a meeting in the Kremlin on the situation on the global market.
“Today, we are observing logistical problems on hydrocarbon transportation routes and we see that this is having a very negative impact on global production, on global supply chains. They are having an impact on industry and, without exaggeration, on the entire system of international economic relations,“ the head of state said.