The ongoing Iran-Israel war in the Middle East has entered its second week. After this war, there is huge turmoil in the global oil market. According to Bloomberg, this tension has also had a direct impact on the shares of Saudi Aramco, the world’s largest oil company.
The ongoing Iran-Israel war in the Middle East has entered its second week. After this war, there is huge turmoil in the global oil market. According to Bloomberg, this tension has also had a direct impact on the shares of Saudi Aramco, the world’s largest oil company. Aramco shares surged nearly 4.9 percent intraday during trading in Riyadh on Sunday, which is believed to be the biggest gain since May 2023.
This rise in the company’s shares was seen at a time when the price of Brent crude crossed $ 90 per barrel on Friday. Due to increasing tension between Iran and Gulf countries, pressure on global oil supply has increased, due to which further rise in oil prices is expected in the coming days.
cut in oil production
According to the report, United Arab Emirates (UAE) and Kuwait have also started cutting oil production. The main reason behind this is the situation like the Strait of Hormuz route is almost closed. This route is considered very important because approximately one-fifth of the world’s total energy exports passes through this route. Any obstruction in this route can have a major impact on global oil supply and exports.
Read full article
Market experts say that rising oil prices can prove positive for Aramco. According to him, the rise in oil prices can compensate for the possible decline in the company’s exports. He also said that Aramco could divert most of its oil shipments to the Red Sea. This is mainly a matter of logistics and handling excess capacity.
Aramco made oil expensive
Last week, Saudi Aramco also raised the prices of its key crude oil for the month of April to Asian buyers. This is considered to be the biggest price increase after August 2022. This decision was taken amid increasing geopolitical tension in the Middle East.
Meanwhile, Saudi Arabia, UAE, Kuwait and Bahrain said early on Sunday that they had intercepted several attacks carried out by Iran. The development came at a time when Iran’s President had said that he has instructed the military not to target countries that are not directly attacking Iran. However, a senior Iranian official later said that Tehran has the right to attack countries that host US military bases.
Attacks on Aramco oil fields
The situation seemed to worsen over the weekend when reports of attacks on some of Aramco’s oil fields also emerged. The drone strike was intercepted in the Shaybah area near the Abu Dhabi border, while the attack on the Berri site on Saturday caused minor damage. The combined production capacity of these two oil fields is said to be around 15 lakh barrels per day.
Apart from this, Saudi Arabia’s largest refinery Ras Tanura also had to be temporarily closed after a drone attack last week. In such a situation, experts believe that if the tension in the Middle East does not subside soon, global oil prices may reach the level of $ 100 per barrel.
related news
end of article
