China calls on countries to ‘safeguard’ energy security

This is in light of the impact of the Ukraine-Russia conflict on oil prices.

China has called on countries to jointly protect energy security amidst the conflict between Ukraine and Russia, its Foreign Ministry Spokesperson Hua Chunying said.

“Truly responsible countries should take responsible behavior to jointly safeguard global energy security, maintain security and stability of the global supply and industry chain, and avoid regional tensions that impact the security and stability of the international energy market,” Chunying said at a briefing.

She also called on all parties to exercise restraint and ease tension through dialogue and negotiation as the world is already facing enough challenges.

“Only when the situation stabilizes can spillover effects of various types be prevented. And I also want to say that the world today is not peaceful and there have been enough problems,” Chunying said.

According to Rystad Energy, the military conflict impacts up to 1 million barrels per day of crude supplies, transiting through Ukraine and the Black Sea. Based on its projections, oil prices could surge up to $130 per barrel, which could affect gas pump prices and energy bills.

“The reality is that significantly higher prices are on the horizon in Europe and overseas,” Rystad Energy CEO Jarand Rystad said.

Rystad does not expect a full-scale military conflict between Russia and The West, but it sees an economic war down the line.

“Russia cannot win an outright economic war, but it does have a major weapon to wield – oil and gas exports,” he said.

“Demand for oil and gas in The West is only rising, and a global energy crisis is likely to unfold.”