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<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div><\/div>\n<\/div>\nRosneft<\/a> chief executive Igor Sechin on Saturday said American energy companies were the biggest beneficiaries of the closure of the Strait of Hormuz, while warning that prolonged disruption in the vital shipping route could ultimately undermine global oil demand and accelerate interest in alternative energy sources, as per Reuters.Speaking at the St. Petersburg International Economic Forum, Sechin argued that the closure of the strategic waterway, through which around one-fifth of global crude supplies pass, had reshaped energy markets in a way that favoured the United States.\u201cThe main beneficiaries, of course, were American companies, which gained non-competitive advantages and the ability to secure high-cost supplies,\u201d Sechin said, according to Reuters.He described the closure of the Strait of Hormuz as \u201can attempt to reshape global energy market regulations to benefit the United States,\u201d adding that measures intended to target Iran had \u201cbackfired on the entire world\u201d and that the associated strategic risks had been underestimated.Also read: Drill, sanction, control: Inside the oil economics driving Trump 2.0<\/a><\/p>\n Sechin cautioned that continued instability around the Strait of Hormuz could have broader consequences for the global energy sector.\u201cContinued tension in the Strait of Hormuz for a long time undermines the long-term demand for oil. It may also trigger another surge of interest in alternative energy,\u201d he said.The comments come after Iran blockaded the Strait following US and Israeli attacks on the country in February, while the United States imposed a blockade on Iranian ports, according to Reuters.<\/p>\n Sechin said oil prices could gradually decline if the Strait of Hormuz reopens in the near future.According to Reuters, he projected crude prices would remain around $95-$96 per barrel by the end of this year, fall to $80-$85 per barrel within a year, and return to broader market fundamentals by the second half of 2027.He also said China appeared better prepared than most countries for the crisis because of what he described as a well-planned state policy.However, he warned that other key maritime chokepoints, including the Malacca, Bab el-Mandeb and Gibraltar straits, could also face disruption risks.<\/p>\n In a speech titled \u201cThe beginning of the end or the end of the beginning: what is left at the bottom of Pandora\u2019s box?\u201d, Sechin said the world was facing mounting challenges, including militarisation, financial market risks and looming shortages of critical resources.\u201cAt the bottom of the box, we will inevitably find a global shortage of electricity, food shortages, copper and other metals, and water shortages,\u201d he said.<\/p>\n Sechin also raised concerns about the effectiveness of the OPEC+ alliance, saying the group had lost part of its potential following the exit of countries including the United Arab Emirates and Qatar, according to Reuters.He said the alliance\u2019s production had declined from 58 million barrels per day to 37 million barrels per day over the past decade.The Rosneft chief noted that while most major OPEC+ members have increased production since the agreement was signed in 2016, Russia\u2019s oil output has fallen by 1.5 million barrels per day.\u201cThis is a 15% decline that will need to be offset by necessary investments of at least 10 trillion rubles,\u201d Sechin said, adding that Russia expects greater investment cooperation with OPEC+ member states in the future.<\/div>\nWarns of long-term risks to oil demand<\/b><\/h3>\n<\/p>\n
Oil prices could ease if Strait reopens<\/b><\/h3>\n<\/p>\n
Sechin highlights broader global challenges<\/b><\/h3>\n<\/p>\n
Questions OPEC+ effectiveness<\/b><\/h3>\n<\/p>\n