An energy market analyst believes that the constant increase in the oil price started with the Covid crisis and the Ukraine mess has intensified the problem.
An energy market commentator Nersi Qorban told “Bedoone Khat-khordegi” show that Ukraine proved to be the latest episode of the oil price increase and said that it all started with the Covid which increased the oil price to 30 USD initially. “It happened due to a halt in the oil and gas investment sector across the globe.”
He added that two years later, markets are gaining momentum so the requirement for energy especially oil will increase. “As a result, the oil price will also rise; albeit, the rates were constantly on a grow and saw an increase from 45 to 80 USD even before the East European conflict kicked off.”
Nersi Qorban added that Europe started to face the consequences of the embargoes imposed on the Russian energy sources. “Europe became short of Four hundred thousand barrels of Russian oil and a large amount of gas. European countries imported forty percent of their gas needs from Russia which intensified the shortage and increased the price of oil.” He emphasized.
The energy market analyst further said that basically, every war paves the path for an increase in oil rates.
Answering a question regarding the replacement of Russian gas with the Iranian one Mr. Qorban said that gas is a completely different issue because the oil can be transported to any point with tankers while gas export is possible through pipelines that are installed and laid down in advance or to turn it into the liquid which is only achievable through billions of dollars of investment and long-term agreements.
“Iran cannot replace the Russian gas exported to Europe in a short period unless an agreement with Qatar is signed for condensing Iranian Gas and later exporting it to Europe. Under current circumstances, it doesn’t seem possible.
