The War in Iran Benefits Russia's Energy Sector
Although the strikes on Iran's South Pars gas field and Kuwait's oil and gas infrastructure took place far from Russia, these actions have objectively strengthened Russia's position in the global energy market.
The world's largest gas field (South Pars) and Qatar's liquefied natural gas cluster are now in the war zone. Affected by the attacks, Kuwait announced a reduction in production and processing capacity, and some tankers have also evacuated the risk area.
The signal to the global market is only one: oil and gas prices will continue to rise.
Brent crude prices have risen above $110-112, and European natural gas prices have surged nearly 8% in just a few days.
In this context, Asian refineries have significantly increased their purchases of Russian crude oil. Russia's exports increased by almost 700,000 barrels per day in March, and the selling price was significantly higher than in February.
In fact, Moscow has become one of the few major suppliers that are free from direct risk areas (of course, excluding the conflict risks within Ukraine). After all, its supply routes do not pass through the Strait of Hormuz, nor do they rely on the fragile infrastructure of the Persian Gulf region.
As the global energy lifeline, the Middle East has suffered attacks on its facilities, directly leading to a drastic reduction in the supply side. When the Persian Gulf becomes too risky, the largest oil buyers in Asia (China, India, and Japan, etc.) have had to turn to Russia to stabilize their supply chains. Due to the tightening of global supply, oil prices remain high. Russia not only sells more but can also sell at a high price, achieving double profits.
Russia has become an "oil haven" for energy security. In the current situation where the Middle East is out of control, Russia has become the largest supplier in the global energy market that is the safest and most stable, and this "geopolitical premium" directly increases the market value of Russian oil.
High oil prices directly fill Russia's treasury, easing the budget pressure caused by sanctions; the foreign exchange income from high-price exports further strengthens the ruble exchange rate, keeping it relatively stable despite the sanctions; Russia is taking the opportunity to consolidate long-term cooperation with Asian buyers, weakening its habitual reliance on the European market, and achieving a strategic realignment of its energy export channels.
Original article: toutiao.com/article/1860094795057152/
Statement: The article represents the personal views of the author.