Russia’s oil major says US companies benefit from the closure of the Strait of Hormuz
Iran has blockaded the Bosphorus, the main route for about one-fifth of the world’s oil supplies and other vital goods including fertilizer, after the United States and Israel attacked Iran in February and killed Supreme Leader Ayatollah Ali Khamenei. The USA blockaded Iranian ports.
The closure of the strait has shaken global markets, sending oil prices to their highest levels in decades, increasing global inflation and undermining economic growth around the world.
Speaking at the St. Petersburg International Economic Forum, Sechin, a long-time ally of President Vladimir Putin, also said that the OPEC + group of leading oil producers had lost some of its potential with the withdrawal of the United Arab Emirates from the alliance.
Sechin said, “Closing the Strait of Hormuz is an attempt to reshape global energy market regulations for the benefit of the United States. The measures taken to close the Strait were aimed at Iran, but backfired all over the world. Strategic risks were underestimated.” he said.
“Of course, the main beneficiaries were American companies, who gained non-competitive advantages and the ability to secure high-cost materials,” he added.
He warned that other major global routes such as Malacca, Bad El Mandeb and the straits of Gibraltar could also be at risk of disruption following the closure of the Strait of Hormuz.
SECHIN SAID OPEC+ LOST ITS MOJ
Sechin, who is known for being skeptical of Russia’s cooperation with the Organization of Petroleum Exporting Countries, said that the OPEC + group has lost some of its potential after the UAE left the alliance, as well as the earlier departure of Qatar and other countries.
“As a result, the alliance’s production has fallen from 58 million barrels per day to 37 million barrels per day over the last decade,” he said.
Sechin also said that most major OPEC+ members have increased production since the agreement was signed in 2016. Oil production in Russia fell by 1.5 million barrels per day.
“This is a decrease of 15%, which must be compensated by necessary investments of at least ten trillion rubles. We also expect investment cooperation between the member countries of the alliance and our country to expand,” Sechin said. he said.
