BAKU, Azerbaijan, April 23. The situation on the global oil market has become significantly more unpredictable, Taghi Taghi-Zada, Acting Chief of Trading Operations at SOCAR Trading, said at the 2nd Forum on Logistics and Oil Trade in the Caspian and Central Asian Regions in Baku, Trend reports.
“If we look back to 2019, we have witnessed a series of major events: first, the developments in Saudi Arabia in 2019, then the COVID-19 pandemic, followed by the start of the Russia-Ukraine conflict, and now the tense situation, or even conflict, in the Strait of Hormuz,” he said.
Taghi-Zada noted that the situation around the Strait of Hormuz has long been considered in research, academic discussions, and expert debates as one of the most extreme scenarios the world could face in terms of oil supply disruptions.
“And now we are effectively facing it. What is particularly interesting is that discussions usually focused on what would happen if the strait were closed for a day, for three days, or for a week. Now we are approaching the end of the second month of this situation and are still observing how it unfolds. It is important to note that modern markets are largely shaped by news headlines, and we are currently dealing with a highly volatile market. Unlike the initial stage of the conflict, when it seemed that everything was moving in one direction, the situation has now become far more unpredictable. We are still facing a supply deficit of approximately 13-15 million barrels per day from the Persian Gulf region,” he added.
According to the SOCAR Trading representative, alternative supply routes have been developed to mitigate the situation.
“We see how Saudi Arabia, the United Arab Emirates, and other countries in the region are finding solutions, whether through alternative pipelines or internal logistics routes. This, combined with measures by OPEC+ (Organization of the Petroleum Exporting Countries Plus), the International Energy Agency (IEA), the use of strategic oil reserves, reduced refinery utilization, and several other steps, which may seem minor individually, collectively help to ease the situation and the current crisis,” he concluded.
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