Kremlin Says Gulf Instability Has Cut Global Oil Supply
Kremlin spokesman Dmitry Peskov says instability in the Persian Gulf has pushed a significant volume of oil out of the global market and rapidly worsened conditions in the energy market.
He said on Monday that the disruption to Saudi Arabia’s east-west oil pipeline alone had taken more than 4% of global oil supply off the market, which, he said, could have serious consequences for the world’s economies.
Peskov also said Russia has banned exports of petroleum products to meet domestic demand. He said the possibility of lifting the ban and returning some of these products to the global market would be considered after the domestic market is fully supplied.
In another part of his remarks, the Kremlin spokesman welcomed calls to halt Ukrainian attacks on Russia’s civilian economic infrastructure. He said countries that have influence over Kyiv could use that leverage to encourage Ukraine to be more flexible on the path to ending the war.
He also repeated his claim that developments on the battlefield are gradually making it clear to Western analysts that Russia is advancing toward its objectives. Peskov added that Vladimir Putin has welcomed China and India’s readiness to help efforts to resolve the war in Ukraine.
Peskov declined to comment on Finland’s decision to join France’s plan to create an advanced nuclear deterrence concept, saying he was not yet aware of the details. He also said the expansion of BRICS and new membership candidates were not discussed at the group’s recent meeting in New Delhi, but that Russia supports Cuba’s desire to join BRICS.
The Persian Gulf is considered one of the world’s most important energy transit routes, and any disruption to oil production and transport routes in the region typically has a direct impact on global prices and supply.
