Swiss traders warn of a heightened risk of fuel shortages
Keystone-SDA
There is a “very high” risk of fuel shortages in Switzerland, according to Florence Schurch, Secretary-General of the Swiss commodities trade association Suissenégoce.
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Schurch expressed her concerns in an interview with the French-language newspapers Tribune de Genève and 24 heures. Already in March, the umbrella association had warned that, starting this month, the strategic reserves of some countries – including the Philippines, Vietnam and Bangladesh – would be depleted.
“To be honest, the situation is really getting complicated,” Schurch said.
On the gas front, the situation is also described as “serious”. Stocks, normally accumulated during the summer, are at risk of being insufficient, not least “because of the destruction of a refinery in Qatar, which will not be rebuilt any time soon”.
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Switzerland faces a steep energy bill due to the Middle East conflict
Schurch also predicts a sharp global increase in food prices, although the impact on Switzerland is expected to remain more limited than in other countries.
She also pointed out that Switzerland’s gas reserves are stored abroad, particularly in Germany and France. This dependency could be problematic in times of crisis. “The Covid experience has taught us that, in emergency situations, international support can fail,” she noted, citing the case of the supplies of masks blocked during the pandemic.
No price ceiling
Switzerland also has only one oil refinery, which covers about 20% of national needs. However, according to Schurch, the federal government might be willing to pay higher prices in order to secure the energy supply.
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Iran war: Switzerland expects bumper tax from oil traders
In times of scarcity, competition between states becomes more and more intense, and richer nations tend to secure the available resources at any cost.
In recent days, the price of oil has risen above $125 per barrel, after a United States official indicated that the White House might extend the blockade of Iranian ports for several months.
US navy ships started a blockade of the Persian Gulf on April 13 after Iran stopped cargo ships sailing past the Stait of Hormuz unless they paid a toll. Several ships have been attacked making the perilous trip, while US warships have intercepted vessels trying to break its blockade.
According to the Swiss commodities expert, it cannot be ruled out that the price of oil could even rise to $150 per barrel.
“There is no precise threshold beyond which the system stops,” said Schurch. “It all depends on how operators perceive the duration of the conflict and the evolution of demand.”
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Translated from Italian by AI/mga
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