Novak: Global Oil Crisis Unprecedented, 12M Bpd Supply Gap Could Lead to Deficit
Russian Deputy Prime Minister Alexander Novak said the current global oil crisis is unprecedented, with roughly 12 million barrels per day not reaching the market. He warned that a deficit could occur within months if the conflict persists, as Gulf producers cannot increase output if key straits remain blocked.
Russian Deputy Prime Minister Alexander Novak has described the current global oil market crisis as "unprecedented," stating that even last century saw no such situation. According to Novak, approximately 12 million barrels of oil per day are currently failing to reach global markets.
Novak acknowledged that the market has not yet fully felt the impact of the energy crisis because it has been buffered by accumulated reserves. However, he cautioned that if the conflict continues, a deficit is possible within several months. He noted that production from Gulf countries will not increase if key maritime straits are blocked.
Source: MarketTwits