Russia: Hormuz Strait Closure, Gulf Damage Cause Tanker Shortage, Freight Costs Rise
Quick Look
Russia's Deputy PM Alexander Novak stated at SPIEF that the closure of the Strait of Hormuz and infrastructure damage in the Persian Gulf have led to a global energy market shortage of 12 million barrels daily and a dramatic rise in freight costs due to a lack of tankers.
AI-generated summary
ST. PETERSBURG, June 4. /TASS/. The global energy market encountered a shortage of tankers and a dramatic rise in freight costs due to Hormuz Strait closing and infrastructure damage in Persian Gulf nations, Russian Deputy Prime Minister Alexander Novak said at the St. Petersburg International Economic Forum (SPIEF).
"The global energy segment experience the stress from the supply decline. Closing of the Strait of Hormuz and the damage to infrastructure and energy facilities in Persian Gulf countries - all that have very strong impact at present. According to general estimates, the global energy markets are short of 12 mln barrels daily. This is a huge quantity, it is slightly above 10% of the total global supply," Novak said.
The share of the shortfall in volumes in global trade is even higher, about 15-17%, the deputy prime minister said. "Dramatic changes in supply shape new trends, including from the side of the consumer behavior. Logistics routes are changing. We see the dramatic rise in freight and the shortage of tankers on the whole for carrying energy resources," he added.
