Lukoil founder: Middle East conflict's impact on oil prices to be short-lived

MOSCOW, May 22. /TASS/. The impact of the Middle East conflict on oil prices will be short-lived, and the situation in the Strait of Hormuz could be swiftly resolved, so the industry must base its strategy on real oil prices, Lukoil founder Vagit Alekperov believes.

"There is much discussion regarding oil prices today. We believe the Iranian issue is a local one, though it impacts the global market. This problem could dissipate very quickly, so a strategy cannot be built upon it. Strategies must be based on real prices and real economics," he noted in an interview with the Vesti TV program.

When asked if the situation in the Strait of Hormuz poses a challenge for the Russian energy sector, Alekperov said: "It is not a problem. It provides additional budget revenue and income for companies, but we must understand that this is very short-term. We must develop what we have built previously."

According to him, oil demand and global market competition will continue to grow.

"Global competition is here to stay. It will only intensify because our product is in high demand worldwide. More countries and their populations are becoming consumers of our product," he noted.

Alekperov also emphasized that the Russian oil and gas industry is successfully withstanding this competition.

"I believe Russia's oil and gas industry is competitive today: it has survived all stages of its development over more than 30 years. It has not only endured but has also implemented and developed new technologies. Today, 96% of our equipment is Russian-made -- this demonstrates the industry's strength. The industry prepared for challenging times and is navigating them calmly," he added.