The Organisation of the Petroleum Exporting Countries (OPEC) has lamented that the ongoing war by Russia in Ukraine is causing huge volatility in the global energy market warning that a continuation of the war could pose more danger.
The Secretary-General of OPEC, Mr Mohammad Barkindo, made the assertion while speaking at the virtual 62nd Meeting of the Joint Technical Committee (JTC) on Wednesday.
Barkindo pointed out that there were implications and possible far-reaching consequences of the ongoing conflict in Ukraine.
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He said: ‘As highlighted at our last meeting, the conflict has compounded the uncertainties related to the pandemic.
‘It has heralded in further economic volatility, elevated risk premiums for oil, as well as many other essential commodities, given that both the Russian Federation and Ukraine are key global exporters, including essential agricultural goods.
‘From the oil market perspective, however, what is clear is that Russia’s oil and other liquids exports of more than seven million barrels per day cannot be made up from elsewhere. The spare capacity just does not exist.’
According to him, looking at the entire situation, its potential loss, through either sanctions or voluntary actions, is clearly rippling through energy markets.
‘The crises we face are causing huge volatility, with daily price swings of more than $5 per barrel occurring on 13 occasions across March and April,’ Barkindo ssubmitted.
Meanwhile, Russian President Vladimir Putin on Tuesday informed French counterpart Emmanuel Macron that the West must stop supplying weapons to Ukraine and accused Kyiv of not taking talks to end the conflict seriously.
While accusing Ukrainian forces of committing war crimes he also claimed the EU was ‘ignoring’ them.
Speaking to Macron on Tuesday, Putin said ‘the West could help stop these atrocities by putting relevant pressure on the Kyiv authorities, as well as halting the supply of weapons to Ukraine’ to negotiate a way out.
Putin also maintained Kyiv was not being consistent or ready for ‘serious work’ on ending the conflict.
‘The Russian side is still open to dialogue,’ the Russian leader told Macron, according to the readout released by the Kremlin which was obtained by Africa Today News, New York.