The Organization of the Petroleum Exporting Countries (OPEC), Tuesday warned against the politicization of energy access, saying that the world cannot replace Russia’s share of oil exports.
This follows the U.S. President Joe Biden’s ban of the import of all Russian energy including oil, gas, and coal into the United States, just as American allies promise stiff sanctions for its invasion of Ukraine
OPEC Secretary-General, Mohammad Barkindo, who called for energy neutrality, said: “The issue at stake here is the capacity of the world to meet these perceived shortages.”
Barkindo spoke during the CERAWeek global energy forum in Houston Texas, U.S.
He noted that Russia exports between 7 and 8 million barrels of oil daily, adding that it is “practically impossible” for Russia to keep such an oil export share under financial sanctions over the Ukraine crisis.
He described the sanctions as “the most severe that we have seen so far in any other country, probably.”
He argued that “We have not seen shortage of oil as of this morning. But the perception out there is that with the raft of financial sanctions on Russia … you probably need magicians to continue to produce and export 7 to 8 million barrels of oil a day.”
“We cannot politicize energy” even when the line between oil and geopolitics becomes thin, Barkindo stressed, noting that everyone has the right to access reliable, affordable and clean energy, in line with the United Nations’ Sustainable Development Goals.
WTI crude price surged 7% to $128 per barrel (bbl) on Tuesday following Biden’s announcement of the ban, and Brent crude jumped 7.7% to $132.75 in early trading, and settled down to $109.53 and $112.44/bbl on Wednesday.
This year marks the 40th anniversary of CERAWeek, one of the largest and most influential global energy forums. The five-day conference will end tomorrow.
We have not seen a shortage of oil as of this morning. But the perception out there is that with the raft of financial sanctions on Russia … you probably need magicians to continue to produce and export 7 to 8 million barrels of oil a day.
