13 March 2022 - 15:46
  • News Code: 454679
Russia-Ukraine Tensions, Lose-Lose Policy for Energy Market

TEHRAN (Shana) -- The Director General of OPEC Affairs and Relations with the Energy Communities Department of the Iranian Ministry of Petroleum called the continuation of tensions between Russia and Ukraine a loss-loss policy for the energy market and stressed the importance of global energy security.

In an interview with Shana, Afshin Javan said that the reason for the increase in oil prices in world markets is a combination of fundamental and non-fundamental factors, and added: "Oil prices are currently affected by the tension between Russia and Ukraine and as you can see, Russia and Ukraine have brought oil prices to their highest levels since 2008 ($128). It can be said that the shock of supply and demand is currently determining the price of oil.”

He stated that the most important concern in the oil market is insufficient investment in this industry, and added: "I believe that in the medium and long term, the important issue in the oil market is investment. If not enough investment is made in the oil industry, there will be a big gap between supply and demand."

The Director General of OPEC Affairs and Relations with the Energy Communities Department stressed the need to support the flow of investment in the oil supply sector, and said: "This is the biggest concern in the oil market in the next two years due to the eye-catching return of demand and any delay in this sector will jeopardize the future energy of the world.”

"Investment in the oil industry has risen from an average of $650 billion in 2014 to 2015 to $350 billion in 2020 and 2021, which is a very low figure," he said. "Oil and gas demand is now at its highest level since coronavirus outbreak and will continue to increase for the next few years, especially in the developing countries.”

Emphasizing that the world's energy flow should not be destroyed in the shadow of politics and should be continuous, Javan added: "The smoke of energy insecurity in the world hurts the consumers. Failure to implement projects such as the Nord Stream-2 gas pipeline will damage European industries and put them under pressure.

News Code 454679

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