The Chief Executive Officer of the Chamber of Oil Marketing Companies (COMAC), Dr Riverson Oppong, has warned that ongoing disruptions to global oil supply routes could force Gulf oil producers to cut crude production by as much as 60 per cent.
His warning comes amid disruptions to oil shipments through the Strait of Hormuz and reported drone attacks on Saudi oil infrastructure, developments that have tightened global crude supplies and pushed oil prices higher.
Speaking on Channel One TV’s The Point of View on Monday, September 14, Dr Oppong said disruptions to crude oil transportation were putting significant pressure on producers, particularly as storage capacity becomes increasingly constrained.
According to him, producers could soon have little option but to reduce output if they are unable to transport or store the crude being produced.
“Very soon, the Gulfians are going to reduce crude oil production by 60%. They have no choice because they’re going to produce, they’re not going to have any place to store it because of this shutdown,” he said.
Strait of Hormuz disruption raises concerns
Dr Oppong said the situation had been worsened by disruptions around the Strait of Hormuz, a critical route for global crude oil and liquefied natural gas shipments.
He noted that alternative infrastructure designed to transport oil outside the Strait was also facing disruptions, further limiting options for producers.
He also pointed to declining refinery activity in the Middle East, saying the impact was already being reflected in regional diesel production.
“The refinery throughput today in the Middle East has shortened by 110. So it tells you that even diesel production within the Gulf itself has shrunk with the September data we are gathering now,” he said.
Russian fuel disruptions add pressure
The COMAC CEO further warned that disruptions affecting Russian diesel and petrol flows were adding to the pressure on global energy markets.
He described the current situation as unprecedented, citing simultaneous disruptions affecting major oil-producing and supply routes.
“Never ever have we experienced such an outlook ever in history, where two major sources, the Caspian source and the Strait of Hormuz, or the Gulf source, have both been attacked,” he said.
Implications for Ghana
Dr Oppong cautioned that prolonged disruptions could have serious consequences for countries that rely heavily on imported petroleum products, including Ghana and other African economies.
A sustained reduction in global crude production, combined with tighter supplies and higher international oil prices, could increase pressure on petroleum product prices and import costs in affected markets.
His comments come as global energy markets remain sensitive to disruptions along key oil supply routes.
