Kremlin Warns Oil Prices Could Rise Further Amid Supply Disruptions
Prices already at $120/barrel, could climb higher if Russian export infrastructure damaged
Quick Look
- Kremlin Spokesman Dmitry Peskov warned on May 3 that oil prices, already at $120 per barrel, could rise further if Ukrainian attacks damage Russian export infrastructure.
- Oil supplies to the global market have declined due to developments in the Strait of Hormuz, and any disruption to Russian supplies would push prices higher.
- Peskov commented on Western requests for Ukraine to avoid targeting Russian oil facilities, stating he was unaware if Zelensky rejected the request.
AI-generated summary
Why It Matters
Oil prices have been volatile due to geopolitical tensions. The Strait of Hormuz is a critical chokepoint for global oil supplies, with approximately 20% of world oil shipments passing through it. Russia is a major oil exporter, and any disruption to its exports would have significant global market implications.
Oil supplies to the global market have greatly declined due to developments in the Strait of Hormuz, and if some of our oil supplies fail to reach the market, prices will grow even higher, while they have already reached the $120 per barrel level, Kremlin Spokesman Dmitry Peskov told MOSCOW, May 3.
The already high oil prices may climb even higher if Kiev's attacks damage Russian export infrastructure, Kremlin Spokesman Dmitry Peskov told TV reporter Pavel Zarubin.
When asked to comment on Vladimir Zelensky's response to the West's request to avoid targeting Russian oil facilities, Peskov said: "I don't know if he rejected the Europeans' request or not, but the situation is the following: oil supplies to the global market have greatly declined due to developments in the Strait of Hormuz, and if some of our oil supplies fail to reach the market, prices will grow even higher, while they have already reached the $120 [per barrel] level."
Open Questions
- What specific developments in the Strait of Hormuz caused the supply decline?
- Did Zelensky explicitly reject or accept the Western request?
- What specific Russian oil facilities might be targeted?
