Tuesday, 02 January 2024 12:17 GMT

Kremlin Warns of Oil Supply Strain as Demand Surges for Russian Oil


(MENAFN) Kremlin spokesman Dmitry Peskov sounded the alarm Wednesday over a sudden and steep surge in demand for Russian oil, cautioning that Moscow may soon struggle to fulfill all incoming requests as global energy markets buckle under mounting pressure.

Speaking to broadcast company VGTRK, Peskov painted a picture of an overwhelmed supply chain. "The demand is high, the demand for alternative directions is high, so, of course, a moment may come when additional demand will be difficult to satisfy," he said.

The remarks came as Kremlin presidential envoy Kirill Dmitriev leveled sharp accusations at Kyiv over fresh drone strikes on Russian energy infrastructure, blaming Ukraine for deliberately inflaming an already precarious global energy situation.

"The Ukrainian leadership seems to be desperately trying to exacerbate the world's largest energy crisis, further accelerating the EU's energy collapse," Dmitriev wrote on X, referencing the strikes on the port of Ust-Luga in Russia's Leningrad Region.

Russian media reported that the Ukrainian drone assault ignited fires across several oil storage tanks at the strategically vital port. Ukraine's Security Service (SBU) claimed full responsibility for the operation, stating the drones covered more than 900 kilometers (560 miles) to reach their targets. Ukraine's General Staff separately confirmed damage to the Russian patrol icebreaker Purga.

Dmitriev had previously warned that further spikes in energy and commodity prices would deliver a severe blow to economic stability and accelerate inflationary pressures across the continent. He described a "tsunami of energy shock" bearing down on Europe, directly linking it to the EU's decision to abandon Russian natural gas — a warning that Wednesday's attack on Ust-Luga appeared to sharpen considerably.

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