US-Israeli War on Iran Causes Major Oil, Gas Disruptions

The U.S. and Israel war against Iran has 'disrupted oil and gas exports out of the Middle East and forced production stops from Qatar to Iraq.

Here are the main energy disruptions that have occurred so far.

Production Shutdowns

Iraq, the second largest producer in OPEC, has slashed its?output. Iraq has reduced nearly 1.5 million barrels a day - or about half - because of storage limitations and the absence of an export route. The country could be forced to close 3 million barrels per day, or nearly all its production, if exports don't resume.

QatarEnergy LNG has been halted. Qatar stopped its LNG operations on Monday. This affected?some the world's biggest plants, and a source which supplies around 20% of global LNG. QatarEnergy halted some downstream production on Tuesday.

Saudi disruptions. Saudi Arabia has suspended production at its 550,000-bpd Ras Tanura refinery. It also began rerouting crude oil loadings from eastern port to Yanbu?on the Red Sea.

Israel and Iraq’s Kurdistan Region also reduced their oil and gas production.

A fire was also caused by debris in the UAE's Fujairah Port, which is a major global hub for oil storage and bunkering.

Shipping

Strait of Hormuz - traffic was shut down for the fourth day following an attack by Iran on five ships. This attack cut off 20% of the global oil and LNG supplies.

Iran declares Strait closed. A senior Iranian Revolutionary Guards official announced on March 2, that the Strait of Hormuz was closed. He warned Iran would fire at any ship trying to pass.

War-risk insurance is cancelled by major marine insurers. They will no longer cover vessels operating in Iranian, Gulf or adjacent waters.

Impact on Consumers

China reduces refinery runs: Due to disruptions in crude flow, Chinese refiners have shut down crude units or are advancing maintenance plans.

India looks for alternatives: India has said that it is looking at alternative sources of crude oil, LPG, and LNG in case the crisis lasts longer than 10-15 days.

Indonesia shifts its sourcing: Indonesia intends to increase U.S. Crude imports to compensate for reduced Middle East supplies. (Reporting and editing by Alex Lawler, Matthew Lewis and Ahmad Ghaddar from London)

(source: Reuters)