Putin: The rise in energy costs is “temporary” and we must take advantage of the rise in oil prices
The Russian President called, Vladimir Putin, the country’s oil and gas producers, called on the country’s oil and gas producers to seize the opportunity of a spike in commodity prices to reduce their debt, saying the rise would be temporary. Putin stated during a meeting with energy sector officials that he is with Closing the Strait of Hormuz Virtually in the midst of conflict in the Middle East, the oil production that depends on this passage "At risk of complete shutdown" Within a month, adding that restoring LNG capacity in the region will take weeks, if not a month, and that "It is impossible to quickly compensate for lost quantities". Putin said that Russia "You should be aware that the current rise in commodity prices is inevitably temporary"And it has to start from this point. He added: "Changes in the balance of supply and demand for hydrocarbons will, of course, lead to price stability. This is inevitable, so it is important for Russian energy companies to take advantage of the status quo, including using additional export revenues to reduce their debt burdens to Russian banks."
Putin stressed that Russia will continue to supply oil and gas to its trusted partners, not only in the Asia-Pacific region, but also in Eastern Europe, especially Hungary and Slovakia. Meanwhile, the government in Moscow is considering ending most natural gas sales to the EU for now, and not waiting until the region gradually bans imports of both pipelined gas and liquefied gas from Russia by late 2027. However, Putin stressed that Russia is ready to work with the bloc and supply it with oil and gas. "If European companies and buyers decide to reorient themselves and provide us with long-term sustainable cooperation". He added: "But we need signs from them that indicate their readiness and desire to work with us and provide us with this stability". It is noteworthy that futures Brent crude rose on Monday by $7.21, or 7.8%, to reach $99.90 per barrel by 16:43 GMT, while US West Texas Intermediate crude rose by $4.50, or 5.0%, to reach $95.40.
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