The head of the Russian company “Rosneft” Igor Sechin spoke about the situation of the global oil market, in light of the Corona virus crisis and the possibility of Iranian oil returning to the markets.
The head of the Russian company, “Rosneft,” said in the “Global Energy Transformation” dialogue session at the Petersburg International Economic Forum today, that there are still many uncertainties in the world, which affect the oil markets.
He added, that lifting sanctions on Iran does not give confidence that the restrictions under some pretext will not be transferred to other participants in the oil market.
He pointed out that the recovery of crude demand is linked to vaccination campaigns against the emerging corona virus, and Sechin said, “Demand for oil will recover as the vaccination campaigns continue, and the recovery may slow with new waves of the pandemic, but it will not stop the (recovery) process.”
The official warned that the world is facing the risk of a severe shortage in the oil and gas sectors, similar to what happened in the metals industry, due to the lack of investments amid efforts to turn to alternative energy, while the demand for oil continues to rise.
He pointed out that the leading shale oil companies in the United States suffered losses of more than 60 billion dollars in 2020, and said that the American shale oil industry did not exit the cycle of losses despite the high prices of black gold.
Today, Saturday, the activities of the Petersburg International Economic Forum, which lasted for 4 days, will end, amid active Arab and foreign participation. The forum is the first major event to be held in person (face to face) after the outbreak of the Corona pandemic last year.
During this year’s forum, health prevention measures were taken into account, and modern digital technologies were used.
Source: RIA Novosti