Elon Musk says Russia's war means more oil production needed now

[SINGAPORE] Elon Musk says more fossil fuel production is needed now, even if it is bad for his electric car company, Tesla.

"Hate to say it, but we need to increase oil & gas output immediately," the billionaire tweeted Saturday (Mar 5), as Russia's invasion of Ukraine chokes off fuel supplies and drives up gas prices.

Musk signalled that the adoption of electric models and a wider shift to renewable energy could not be accelerated fast enough to shield consumers from higher prices in the short term.

"Obviously, this would negatively affect Tesla, but sustainable energy solutions simply cannot react instantaneously to make up for Russian oil & gas exports," said Musk.

His tweets come with the Biden administration now weighing a ban on US imports of Russian crude oil, after earlier rebuffing the idea, according to people familiar with the matter. Oil industry leaders in the US are also calling for support to boost production.

Oil capped its biggest weekly gain on record Friday, while commodities from crops and metals to gas have also surged on the impact of Russia's invasion of Ukraine. BLOOMBERG