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Volatility on oil market to be high due to energy transition - Gazprom Neft CEO

Much will depend in this regard on further action of OPEC+, Alexander Dyukov said

VLADIVOSTOK, September 3. /TASS/. De-carbonization of the economy under the tough scenario will lead to a long period of high volatility on the oil market, CEO of Gazprom Neft Alexander Dyukov said at the Eastern Economic Forum.

"The question is when the oil consumption peak will occur, be it in 2025 or 2026. However, it is obvious that even in this net zero scenario oil will be need for fairly long time," Dyukov said. The pessimism in respect of traditional energy may lead to insufficient investments and as a consequence in occurrence of "production shortage from time to time, including oil, and the high price situation," he added.

"That’s why we expect not merely low prices but also the situation of fairly high volatility on the oil market. Much will depend in this regard on further action of OPEC+," the top manager said.

Oil producers should factor in that the tough de-carbonization scenario is possible and diversify their business, Dyukov added.