The Organisation of the Petroleum Exporting Countries (OPEC) says the ongoing war by Russia in Ukraine is causing huge volatility in the global energy market.
Mr Mohammad Barkindo, OPEC Secretary-General, made the assertion while speaking at the virtual 62nd Meeting of the Joint Technical Committee (JTC) on Wednesday.
Barkindo noted that there were implications and possible far-reaching consequences of the ongoing conflict in Ukraine.
He said: “As highlighted at our last meeting, the conflict has compounded the uncertainties related to the pandemic.
“It has heralded in further economic volatility, elevated risk premiums for oil, as well as many other essential commodities, given that both the Russian Federation and Ukraine are key global exporters, including essential agricultural goods.
“From the oil market perspective, however, what is clear is that Russia’s oil and other liquids exports of more than seven million barrels per day cannot be made up from elsewhere. The spare capacity just does not exist.”
According to him, its potential loss, through either sanctions or voluntary actions, is clearly rippling through energy markets.
“The crises we face are causing huge volatility, with daily price swings of more than $5 per barrel occurring on 13 occasions across March and April,” Barkindo said.