US energy chief calls oil market disruptions 'temporary'
HOUSTON: US Energy Secretary Chris Wright said on Monday that oil market disruptions are 'temporary', as costs surge on the back of the war in the Middle East, squeezing consumers.
Asked how markets have been reacting to supply disruptions, Wright said 'markets do what markets do', adding that prices have surged to 'send signals to everyone that can produce more — please produce more'.
Wright told the annual CERAWeek conference in Houston that 'prices have not risen high enough yet to drive meaningful demand destruction'.
He stressed that Washington has taken 'pragmatic solutions' to ease sanctions on oil that is already being shipped, allowing it to enter the market.
'But these are mitigants of a situation that's temporary,' he stressed.
More than 10,000 attendees are expected at the high-level energy gathering, which this year is dominated by oil and gas supply disruptions sparked by the war.
US-Israeli strikes on Iran on February 28 triggered Tehran's retaliation that brought commercial shipping through the Strait of Hormuz to a virtual halt.
Around a fifth of global crude oil and liquefied natural gas passes through the critical waterway during peacetime, and US consumers are now facing average petrol prices of nearly $4 a gallon.
Attacks on critical energy facilities in Iran, Qatar and other Gulf countries have exacerbated global oil and gas supply problems.
Oil prices tumbled on Monday as US President Donald Trump suddenly ordered a halt to strikes targeting Iranian infrastructure after 'very good' talks — although Tehran denied that negotiations had taken place.
By RSS/AFP
