The chief executive of Shell has warned that the world could face significant pressure on energy supplies as conflict in the Middle East continues to disrupt global markets.
Wael Sawan said global oil reserves have helped soften the impact of supply shortages caused by escalated tensions between the United States and Iran.
Speaking at the Wall Street Journal CEO Council Summit in London, he warned that the “danger of that is we are borrowing from the future.”
Sawan said the prospect of opening up the Strait of Hormuz was “very difficult to call” but said: “What is clear is that the nature of the disruption to the global energy system is something like we have never seen before.”
He said the international energy system was underpinned by significant reserves of crude and oil products but “we are now drawing down hard on all of those reserves."
He added: “God forbid if there are any other disruptions that take place, that starts to put significant tension into the system, and of course, prices respond accordingly.”
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