Dr Riverson Oppong, Chief Executive Officer of the Chamber of Oil Marketing Companies (COMAC), said on Channel One TV’s The Point of View that ongoing disruptions to global oil supply routes could compel Gulf producers to cut crude output by as much as 60%.
Oppong cited the tightening of crude supply caused by blockages in the Strait of Hormuz and drone attacks on Saudi oil infrastructure, which have pushed oil prices higher and strained producers’ ability to transport and store oil.
He warned that the Gulf countries may soon have to reduce production because they lack storage capacity amid the shutdowns. “Very soon, the Gulfians are going to reduce crude oil production by 60%. They have no choice because they’re going to produce, they’re not going to have any place to store it because of this shutdown,” he said.
Oppong added that the situation has worsened with disruptions around the Strait of Hormuz, a key route for global crude and liquefied natural gas flows, and that alternative supply routes are also affected. He noted that refinery throughput in the Middle East has shortened by 110, indicating a shrink in diesel production within the Gulf itself.
The CEO also warned that disruptions to Russian diesel and petrol flows are adding pressure to global energy supplies. “Never ever have we experienced such an outlook ever in history, where two major sources, the Caspian source and the Strait of Hormuz, or the Gulf source, have both been attacked,” he said.
Oppong cautioned that the combined disruptions could have serious implications for countries that rely heavily on imported petroleum products, including Ghana and other African nations.
