The head of oil trader Trafigura believes that the energy situation is critical, as sanctions against Russia limit oil supplies.
Jeremy Weir, chief executive officer of oil trader Trafigura, spoke at the Financial Times Global Boardroom about the critical situation. He believes that oil prices may rise to historical highs and the reason for this was the restrictions on Russian oil exports imposed by the United States and the European Union.
Weir believes that rising copper and lithium prices will also put pressure on global economic growth and could trigger a slowdown in the economy.
“If we see very high energy prices for a certain period of time, we will eventually see a destruction of demand,” he explained.
Weir also noted that so far there are no signs of a slowdown in demand for oil, despite record prices for diesel and gasoline.
After Weir’s statement, Alexey Pushkov, in his telegram channel, assessed the current situation with oil prices:
“The effect of the embargo imposed by the EU on oil supplies from Russia can be completely negated by an increase in oil prices. If the aim of the embargo was, as the leadership of the European Commission said, “to deprive Putin of income”, then this goal is unlikely to be achieved in the near future. In fact, by provoking, along with other factors, an increase in oil prices, from the point of view of the financial effect, the oil embargo “eats” itself”.
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