Jakarta, October 9, 2024 - The ongoing conflict in the Middle East, particularly between Israel and Iran, is causing oil prices to surge, with market participants anticipating crude oil prices could reach $100 per barrel. The conflict poses a significant threat to global oil supply, particularly affecting 4% of the world's oil supply linked to Iran.
Israel's attacks on Iranian oil production and export facilities could lead to substantial supply disruptions, potentially exceeding one million barrels per day. Iran ranks among the top producers of oil globally, producing 21.91 million barrels per day in 2023, according to the U.S. Energy Information Administration (EIA).
The United States remains the largest oil producer, also consuming 20.5 million barrels per day, while Saudi Arabia and Russia follow with 11.13 million and 10.75 million barrels per day, respectively. The geopolitical tensions, particularly the conflict in Ukraine and sanctions on Russian oil, have further complicated the global oil landscape.
The ramifications of the escalating conflict are profound, as disruptions in oil supply could lead to increased prices worldwide, impacting economies heavily reliant on oil imports. Analysts warn that the potential loss of Iranian oil exports could have a significant ripple effect on the global market.
As the situation develops, global stakeholders are closely monitoring the conflict, which could prompt immediate reactions from oil-producing nations and OPEC's production strategies.