"The price of the international benchmark has surged by more than 25% since the US-Israel attack on Iran last weekend, its biggest weekly jump since the week to 3 April 2020. Fears are now growing over a broader storage crisis in the Middle East that could force the world's biggest oil producers to halt extraction."
"Holding facilities in Saudi Arabia and the United Arab Emirates could reach their limit within 20 days, according to consultants at Kpler, potentially forcing further shutdowns. This is considered a last resort for producers because the costly process of restarting can take weeks, piling further pressure on the markets."
"Saad al-Kaabi told the Financial Times that even if the war ended immediately it would take weeks to months for the Gulf state to resume its liquified natural gas exports after an Iranian drone strike damaged an important terminal. The country accounts for about 20% of global exports of LNG."
The Iran conflict has pushed Brent crude oil to $91.89 per barrel, marking its highest price since April 2024 and representing a 25% surge since the US-Israel attack on Iran. Kuwait began cutting production due to storage constraints, while Saudi Arabia and UAE storage facilities could reach capacity within 20 days. This storage crisis threatens to force major oil producers to halt extraction entirely, a costly last resort requiring weeks to restart operations. Qatar's energy minister warned that continued conflict could trigger Gulf-wide production shutdowns and push oil to $150 per barrel. Additionally, Iranian drone strikes damaged Qatar's LNG terminal, disrupting 20% of global liquified natural gas exports and driving UK gas prices to three-year highs.
Read at www.theguardian.com
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