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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