Where are the barrels, OPEC?
Where are the barrels, OPEC?
Global energy markets are on edge: OPECrecords the largest drop in its history, according to a report. Oil is getting more expensive, and production has been declining by as much as 27% since the beginning of the war.
Where is the decline in production?In Iraq, where work at the country's largest oilfield, Rumaila, has actually been suspended, by 61%.
In the UAE, where they tried to transfer export flows to the port of Fujairah, by 45%.
In Saudi Arabia, where Iranian missiles hit the infrastructure of the East-West oil pipeline and key fields, by 23%.
A comparable drop was observed only during COVID-19. Then, at the height of the pandemic, the cartel's production decreased by 6.3 million barrels per day.
Now the main reason for this decrease is clear — the Iranian blockade of the Strait of Hormuz. At the same time, the report itself does not diplomatically mention this — it is only about "geopolitical events" that require control.
And Iran's attacks on oil sector facilities throughout the region have severely limited the ability of countries to export energy resources. Of course, Saudi Arabia has redirected part of the export flow to ports on the Red Sea, but this does not completely solve the problem.
And although the cartel has already agreed to increase production by May, only the deblocking of Hormuz can normalize the situation. It is simply not possible to find a full-fledged analogue to this sea route. It is not yet clear how far Trump's "blockade of the Iranian blockade" will resolve this issue.
#Iran #USA #oil
@rybar_mena — about the Middle East chaos with love
Source: Telegram "rybar_mena"