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Published: 11:07, March 09, 2022 | Updated: 15:43, March 09, 2022
OPEC chief warns of global oil shortage over Russia sanctions
By Xinhua
Published:11:07, March 09, 2022 Updated:15:43, March 09, 2022 By Xinhua

Photo taken on March 12, 2019 shows operating oil pumps in Luling of Texas, the United States. (WANG YING / XINHUA)

NEW YORK/HOUSTON - The head of the Organization of Petroleum Exporting Countries warned Tuesday that the world cannot replace Russia's share of oil exports, calling for energy depoliticization.

"The issue at stake here is the capacity of the world to meet these perceived shortages," OPEC Secretary-General Mohammad Barkindo told the CERAWeek global energy forum in Houston, US state Texas.

This year marks the 40th anniversary of CERAWeek, one of the largest and most influential global energy forums. The five-day conference concludes on Friday.

We have not seen shortage of oil as of this morning ... But the perception out there is that with the raft of financial sanctions on Russia ... you probably need magicians to continue to produce and export 7 to 8 million barrels of oil a day.

Mohammad Barkindo, OPEC Secretary-General

Noting that Russia has been exporting 7 million to 8 million barrels of oil daily, Barkindo said it is "practically impossible" for Russia to keep such an oil export share under financial sanctions over the Ukraine crisis, calling these sanctions "the most severe that we have seen so far on any other country, probably."

"We have not seen shortage of oil as of this morning," he said. "But the perception out there is that with the raft of financial sanctions on Russia ... you probably need magicians to continue to produce and export 7 to 8 million barrels of oil a day."

ALSO READ: Oil prices surge amid talks of Western ban on Russian oil

"We can not politicize energy" even when the line between oil and geopolitics becomes thin, Barkindo stressed, noting that everyone has the right to access reliable, affordable and clean energy, in line with the goal of the United Nations.

Oil prices surged again on Tuesday as the United States announced a ban on energy imports from Russia, the world's second-largest oil exporter behind Saudi Arabia.

The West Texas Intermediate (WTI) for April delivery added $4.30, or 3.6 percent, to settle at $123.70 a barrel on the New York Mercantile Exchange, its highest finish since August 2008, according to Dow Jones Market Data.

Brent crude for May delivery increased $4.77, or 3.9 percent, to close at $127.98 a barrel on the London ICE Futures Exchange, its highest settlement since July 2008.

This AFP graphic dated March 8, 2022 shows two charts of the price of a barrel of Brent and WTI since 2008.

Oil prices in the futures markets have risen more than 30 percent since the Ukraine crisis worsened in February, according to a Bloomberg report on Tuesday.

US President Joe Biden on Tuesday announced the imposition of an energy embargo on Russia, banning US imports of oil, liquified natural gas and coal from Russia over its ongoing military operations in Ukraine.

Elsewhere, the European Union unveiled a plan to reduce its dependency on Russian fossil fuels.

READ MORE: Oil prices surge as Russia-Ukraine conflict continues

Oil prices have soared recently as the Russia-Ukraine conflict prompted fears about energy supply disruptions from key exporter Russia.

"Larger curtailments of Russian energy supply and exports represent significant challenges for global energy markets," analysts at UBS said Tuesday in a note.

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