Iran War Results in Over $50 Billion Loss in Oil Production

Iran War Results in Over $50 Billion Loss in Oil Production

Global oil markets have lost over $50 billion worth of crude oil since the Iran war began nearly 50 days ago. More than 500 million barrels of crude and condensate have been removed from the global market, marking the largest energy supply disruption in modern history. Gulf Arab countries experienced a loss of about 8 million barrels per day of crude production in March.

Jet fuel exports from Saudi Arabia, Qatar, the United Arab Emirates, Kuwait, Bahrain, and Oman dropped from approximately 19.6 million barrels in February to just 4.1 million barrels for March and April combined. With crude prices averaging around $100 a barrel, the missing volumes represent roughly $50 billion in lost revenues. Recovery of output and flows is expected to be slow, despite claims that the Strait of Hormuz is open.

Global onshore crude inventories have decreased by about 45 million barrels so far in April. Production outages have reached roughly 12 million barrels per day since late March.

Source: https://economictimes.indiatimes.com/markets/commodities/news/how-50-days-of-the-iran-war-led-to-the-loss-of-50-billion-worth-of-oil/articleshow/130338646.cms

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