Latest news with #Exxonmobil
Yahoo
19-06-2025
- Business
- Yahoo
Major oil price shock looming as Israel-Iran conflict threatens critical global shipping passage
If the escalating conflict between Israel and Iran threatens a critical shipping route and significantly cuts global oil supplies, prices could surge to as much as $120 a barrel, according to industry experts. The price of West Texas Intermediate, a key crude oil benchmark, is sitting around a one-year high, while global benchmark Brent Crude is nearing a five-month high Wednesday as the conflict between Israel and Iran enters its sixth day. President Donald Trump met with his national security team Tuesday to discuss the escalating conflict, sparking speculation the U.S. could be preparing to join the attack, creating more volatility in the market, according to Ewa Manthey, commodities strategist at ING Financial Service. Exxonmobil Ceo Talks Oil Supply Amid Iran-israel Conflict But Manthey said the "key worry for the market" is the potential for disruption to shipping through the Strait of Hormuz, a critical waterway that connects the Persian Gulf with the Gulf of Oman and the Arabian Sea. The waterway is not only wide enough to handle the world's largest crude oil tankers. It is considered one of the world's most important oil chokepoints, according to the Energy Information Administration (EIA). ExxonMobil CEO Darren Woods echoed those concerns, saying that while global oil supply is sufficient to withstand a disruption to Iranian exports, the greater concern is the potential impact on oil shipments through that waterway, which moves almost a third of global seaborne oil trade. Read On The Fox Business App In 2024, 20 million barrels of oil per day, about 20% of global petroleum liquids consumption, flowed through the waterway. There are also very few alternative options to move oil out of the strait if it is closed, according to the EIA. Oil Prices Spike After Israel's Strikes On Iran A significant disruption to these flows would be enough to push prices to $120 per barrel, according to Manthey. But if disruptions persist toward the end of the year, she noted that Brent could trade to new record highs, surpassing the record high of close to $150 per barrel reached in 2008. "If this occurs, we would need to see governments tap into their strategic petroleum reserves," Manthey said, noting that it includes the U.S., which sits on more than 400 million barrels of crude oil in its strategic petroleum reserves. Manthey said another solution would be if the Organization of the Petroleum Exporting Countries (OPEC+) tapped into its spare production capacity of more than 5 million barrels per day. "While they are in the process of bringing supply back online, a disruption to Iranian supply may prompt them to bring this supply back at an even quicker pace," Manthey article source: Major oil price shock looming as Israel-Iran conflict threatens critical global shipping passage 登入存取你的投資組合
The National
25-04-2025
- Business
- The National
Fatih Birol warns geopolitical pressures increasing 'by the day' challenge energy security
The Executive Director of the IEA Fatih Birol has called for the need to work collaboratively to ensure energy security at a time of two major risks, the first is the traditional challenge to oil and gas energy supplies and the second, more recent, securing critical minerals supplies. In an interview with The National, Mr Birol highlighted the need to 'find common ground between countries', at a time when 'the geopolitical fragmentation is really increasing'. The issue of geopolitical tensions is top of mind for Mr Birol who stressed that 'the winds are blowing not in the direction of international cooperation but fragmentation'. He warned that 'no country is an energy island… a country alone cannot solve this energy problem'. While he did not name any particular country responsible for that fragmentation, US administration policies and the threat of trade wars are impacting oil prices globally. Mr Birol hosted a two day Summit for the Future of Energy Security with the UK government which concluded on Friday afternoon. Speaking to The National on the second day of the Summit, Mr Birol said that the convening of the Summit itself was a 'big success', with 60 countries from five continents and major oil companies including Exxonmobil, ADNOC and Shell present. He adds among the countries represented ' we have about 15 oil exporters, major renewable producers, major critical minerals owners, copper, lithium, zinc". The attendees list had obvious ommisions, including China. Commenting on China's absence, Mr Birol said 'it was a scheduling conflict.. I will meet them in a few days'. The energy industry is pivoting more towards fossil fuels since the election of Donald Trump as President of the United States. However, declaring new tariffs on numerous countries has also led to uncertainty about the global economy. On the volatility of oil prices, Mr Birol expects lower oil prices to continue to fall. He said 'oil prices may see further downward pressure because of the uncertainty of trade wars'. If the current trajectory remains as it is, he expects 'global oil demand will be impacted in a negative way'. He explained that 'uncertain global economy and the trade wars are making economic outlook much more uncertain and weak' Mr Birol also added that 'oil and gas will be with us for years to come'. Immediate risks include risks to supplies through the Red Sea under threat from potential attacks from the Houthi Rebels Maybe military solutions to open trade routes. On how to handle those threats, Mr Birol said there are 'mechanisms which can in limited ways address some shortfalls.. but (ultimately) needs structured solutions, maybe military solutions, to open up these trade routes'. Mr Birol also also sees that economic realities mean that renewables are now a powerful force. 'A lot of solar and wind coming to market', not necessarily because of climate action rather due to economic dynamics. 'They are cheap', Mr Birol said succinctly. He adds 'it is coming from China, in the Middle East, in Asia, in Latin America, in Europe'. He highlighted that of all the power plants installed in the world, 85% were renewables, explaining 'this is mainly because of the economics.. renewables are no more a romantic story, it is an economic reality'. Yet, electrification and renewables are also facing security threats, with a concentration of renewables in a few countries. The IEA is being careful not to come across as targeting one country or another when raising the issue of critical minerals risk, as Mr Birol said the issue is one of supply chains, which can face technical or natural disaster threats, in addition to geopolitical ones. In the Summit, Mr Birol said 'we agreed that it may be not a good idea to put all the eggs in one basket... Diversification is important'. He added those convened in London agreed that ' the future of the energy security will critically hinge on not only paying attention to traditional security risks such as oil and gas, but also and critical minerals mining and manufacturing'. That will include initiatives between the countries who have critical mineral resources in Latin America, in Africa and others, and countries willing to invest in and develop mines and the refining and processing facilities in those countries.
