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Situation in Red Sea changes logistics, freight costs on oil market — Russian deputy PM

Alexander Novak also noted that the demand for oil is affected by the general economic situation in the world

MOSCOW, February 1. /TASS/. The situation in the Red Sea has led to changes in supply chains on the oil market and affected the cost of freight, Russian Deputy Prime Minister Alexander Novak said in an interview with the Rossiya-24 TV channel.

"Of course, today the situation on the market is greatly influenced by what is happening in the Middle East, firstly. Secondly, [it is] the situation in the Red Sea. After all, today trade relations and logistics chains have changed significantly, which affects the cost of freight, [leads to] the shortage of tankers. This can also affect the market," he said.

Novak also noted that the demand for oil is affected by the general economic situation in the world. According to him, the US economy is now growing, but there are risks of stagnation of economic growth in Europe.

"We are closely monitoring the situation in developing countries such as the People’s Republic of China and India. These are one of the main consumers of energy resources today," he added.

The Deputy Prime Minister underscored the importance of constant monitoring of the current situation in the oil market by OPEC+ countries, so that at any time it is possible to jointly adjust actions aimed at balancing the market.

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Alexander Novak

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