Russia-Ukraine war has severe consequences on global oil market, says Barkindo | TheCable

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Russia-Ukraine war has severe consequences on global oil market, says Barkindo | TheCable RussianUkrainianWar

Mohammad Barkindo, secretary-general, Organisation of the Petroleum Exporting Countries has said the ongoing Russia-Ukraine war has severe consequences on the global oil market.

“We could potentially see the loss of more than seven million barrels per day of Russian oil and other liquids exports, resulting from current and future sanctions or other voluntary actions.”Barkindo said the last major supply disruption of this magnitude was in 1978 and 1979 when 5.6 million barrels per day were taken off the market.

“In 1980-1981 for example, there were losses of 4.1 mb/d, with spare capacity at 12.7 mb/d and in 1990-1991, we witnessed a loss of approximately 4.3 mb/d with spare capacity at 2.5 mb/d,” he said.“Therefore, considering the current demand outlook, it would be nearly impossible to replace a loss in volumes of this magnitude.

“Two years ago, we helped rescue an industry in distress during the wake of the pandemic and have helped restore it to balance and growth,” he said.“I am confident we will persevere once more with the current challenges we are facing.

 

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