ABNA24 - The risk of fuel shortages in Switzerland is “very high”, according to the secretary-general of Swiss commodities trade association Suissenegoce, who warned Monday that conditions in global energy markets are becoming increasingly strained, Swissinfo reported.
“To be honest, the situation is really getting complicated,” Florence Schurch told French-language newspapers Tribune de Geneve and 24 heures.She said concerns had already been raised in March, when the association warned that strategic reserves in several countries, including the Philippines, Vietnam and Bangladesh, could begin running dry this month.
Addressing gas supplies, Schurch described the situation as “serious”, saying reserves typically accumulated during the summer may prove insufficient, partly because of the destruction of a refinery in Qatar that she said is unlikely to be rebuilt anytime soon.Schurch also forecast a sharp rise in global food prices, though she noted the impact on Switzerland would likely remain more limited than in other countries.
She said Switzerland stores its gas reserves abroad, particularly in Germany and France, warning that such dependence could become problematic during times of crisis.
“The COVID experience has taught us that, in emergency situations, international support can fail,” she said, referring to blocked mask supplies during the pandemic.Schurch also noted that Switzerland has only one oil refinery, which covers around 20% of national demand, adding that the federal government may be prepared to pay higher prices if necessary to secure energy supplies.
The US and Israeli war against Iran on February 28 triggered the closure of the Strait of Hormuz. The US later imposed its own blockade on Iranian ports, which remains in place.Roughly one-fifth of global oil and liquefied natural gas flows pass through the strategic waterway.Although a ceasefire is currently in place, maritime traffic in the area remains heavily restricted.
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