Oil prices may grow even further if Hormuz issue not settled — Russian deputy premier

MOSCOW, October 17. /TASS/. Global oil prices may grow even further if attempts to stabilize the situation in the Strait of Hormuz are unsuccessful, Russian Deputy Prime Minister Alexander Novak said in an interview to Marina Kim on the Soloviev Live television.

He recalled that the closure of the strait dealt a serious blow to the global energy and oil market. Earlier, this waterway accounted for approximately 18-20 million barrels per day, or 20% of the total global oil production and consumption.

"We see that the global oil market is currently facing a shortfall of around 4-6 billion barrels per day. That is why the price has risen; it is reacting to the deficit. Volatility is high," he said. "While the market expects things to stabilize there, prices remain high nonetheless."

"However, if this situation persists, in my view, it will drive prices up even further, because stockpiles are currently being drawn from various reserves," the Russian deputy premier added.

In his words, the capacity to use oil stockpiles to stabilize the global market has nearly been exhausted.

"Based on our assessments and those of experts, in fact, the potential to draw from reserves is effectively running out," the official said.