Russian Meeting on situation in the global oil and gas market
- 3小时前
- 讀畢需時 4 分鐘
President of Russia Vladimir Putin: Good afternoon, colleagues.
I asked you to join me today for a meeting to discuss the situation in global energy markets and to compare notes. I would like to hear your views on the ongoing events and to consult with you on how we should coordinate the efforts of the state and private companies in connection with these developments. In this context, we will also discuss Russia’s further actions in global energy as a whole, including with a view of the escalation of the situation, as we understand it, in the Middle East.
Russia has repeatedly – I would like to note this right away – made it clear that attempts to destabilise the situation in the Middle East would inevitably put the global fuel and energy complex under threat, drive up oil and gas prices, restrict supplies of these resources worldwide and, of course, disrupt long-term investment plans. It appears that this is exactly what is happening.
Today, we see logistical problems on the hydrocarbons transportation routes used, and we see that this is having an extremely negative impact on global production chains, affecting industry and, essentially – without exaggeration – the entire international economic relations system, because disruptions in supplies are followed by other purely economic problems: inflation rises, and production suffers not only in the oil and gas sector but also in the manufacturing of industrial goods.
Let me remind you that last year around a third of the world’s seaborne oil exports – about 14 million barrels per day – went through the Strait of Hormuz. Of these, about 80 percent went to the countries of the Asia-Pacific region. At present this route is effectively closed. Oil production tied to the use of the strait risks coming to a complete halt within the next month. It has already begun to decline, while storage facilities in the region are filling up with oil that cannot be exported, or is extremely difficult or very expensive to export.
Clearly, a complete redirection of Middle Eastern oil supplies without using the Strait of Hormuz is – at least for the time being – unrealistic. Changing logistics would not only take a long time but would also require significant spending on infrastructure, expansion of maritime terminals, and so on. And, of course, it would be associated with high political risks that are still here.
Yet consumers need oil today. As a result, global oil prices are rising, and we can see clearly that they have increased by more than 30 percent over the past week alone. I checked today at about 5:30 am Moscow time and, I think, they had already gone through US$119 per barrel. Then they retraced to US$107, US$106, and now, I think – Mr Sechin told me so – oil was trading at around US$103. But price fluctuations continue, and the trend is upward, not downward.
A similar situation is emerging on the global gas market. Supplies of liquefied natural gas from the Middle East have plummeted. Production capacities have decreased in the region, which will take weeks or even months to recover. The missing volumes are impossible to quickly compensate. As a result, global gas prices are also rising, I think, even faster than oil prices.
I would like to emphasise the following in this regard. In the current conditions, competition between buyers for energy suppliers and for stable and predictable oil and gas supplies is intensifying.
In this regard, of course, I cannot but say and remind not only my colleagues here in this room, but also all our consumers in general, that it has been stability that Russian energy companies have always distinguished themselves by.
Obviously, the global logistics of the fuel and energy complex in the context of the ongoing conflict in the Middle East will be changing towards more profitable and more promising markets. At the same time, we must be aware that the current high commodity prices are definitely temporary. You and I understand this, it is obvious, we have to proceed from this, which is why I asked you to convene so as to consult with you on how we should coordinate our efforts for the near future.
A change in the balance of supply and demand of hydrocarbons will certainly lead to a new stable price reality. This will inevitably happen, therefore it is important for Russian energy companies to use the current moment, including for directing additional export revenue to reduce their debt to domestic banks. Colleagues, I would like to draw your attention to this. I ask the Government and the Central Bank to take this process under control.
I would like to stress once again that Russia is a reliable supplier of energy resources. It has always been like this. We will certainly continue to supply oil and gas to those countries that are reliable counterparties themselves. I am referring not only to our partners in the Asia-Pacific region, but also in Eastern European countries such as Slovakia and Hungary. Even now, some colleagues have already informed me before the meeting in such an expanded format that we are increasing supplies to our reliable partners in several regions of the world at once.
At the same time, I would like to remind you that the EU countries plan to introduce additional restrictions on the purchase of Russian hydrocarbons, including liquefied natural gas, effective April 25, up to a complete ban on such supplies in 2027. In this regard, the Government has already been tasked with assessing the possibility and expediency of stopping the supply of our energy resources to the European market without waiting for the door to be defiantly slammed in our face, but doing it now and diverting these volumes from the European market to more promising areas, and gaining a foothold there, which is most important.
The current situation is such that if we immediately refocus on those markets that need increased supplies, we can gain a foothold there now. That is, where there is steady long-term demand and reliable long-term relationships, to those states that are building constructive business relations with Russia.
By the way, I asked you to come so as to ask your advice on all these issues: if European companies, European buyers suddenly decide to reorient themselves and provide us with long-term, sustainable cooperation devoid of political considerations, free from political considerations – we can accommodate them, we have never turned them down, and we are ready to work with the Europeans. But we need some kind of signals from them that they are ready and willing to work with us too and will provide us with this sustainability and stability.
The Government also keeps these issues under control. I hope we will have a substantive conversation with you on all these issues.
Alexander Novak has the floor. Please, go ahead.
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