SOCAR Trading: Balance between traditional, alternative energy necessary amid geopolitical instability

It is necessary to return to finding a balance between traditional and alternative energy sources, commercial director of SOCAR Trading, Taghi Taghi-Zada, said during the Caspian and Central Asia Oil trading and logistics forum in Baku, Report informs.

"Today, most solutions aimed at meeting demand are still based on traditional energy and energy supply - unless there is a clear and stimulating regulatory framework supporting interest in alternatives," he noted.

According to Taghi-Zada, sometimes it's important to simplify the approach and return to basics: clearly understand the essence of trading, who our exporters are, why processing plays a key role in the supply chain, the importance of logistics and shipping, especially in recent years, and what place infrastructure occupies - whether terminals or storage facilities. He also emphasized that refineries are increasingly being transformed into bio-hubs and storage centers: "In addition, it is necessary to take into account the market structure on paper platforms and the high volatility that has become a permanent characteristic of recent years."

According to the director of SOCAR Trading, all these elements matter, but regulation has become one of the key factors determining market dynamics in recent years - especially in the context of sanctions and changes in trade flows.

"And, of course, the influence of geopolitics cannot be underestimated. We are observing an increase in tension and disruptions in traditional routes, such as in the Red Sea. All this enhances the uncertainty that the market faces," he added.