Crude oil prices have risen as Iran and Israel trade attacks, but not as much as you might expect. One reason? OPEC+ could pump a lot more oil if it wanted to.
The sun shines behind a refinery in the South Pars Gas-Condensate field in Asalouyeh Seaport in Iran. Iran's oil and natural gas infrastructure is a possible target for Israeli attacks as tensions in the Mideast mount. Oil prices have risen as a result — but remain relatively low, compared to most of 2024.
Although tensions between Israel and Iran are currently as serious as they have been for decades, said Sen, “the market has been completely brushing it aside.”Why are markets so sanguine? The biggest reason, analysts say, is that the OPEC+ alliance could make a lot more oil — if it wanted.lessmore Rystad Energy, an energy research company, estimates that Iran produces about 4 million barrels of crude per day, and exports about 2 million. OPEC+’s spare capacity – the amount of oil the group could make, but is choosing not to – “currently sits at more than 5 million barrels per day, which could be deployed relatively quickly,” Claudio Galimberti, the chief economist of Rystad Energy, wrote in a research note.
But it would cause less pain to the U.S. than it once would have – and more pain to Iran and its primary customer, China.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
U.S. crude oil rises more than 4% as traders fear Middle East escalation that disrupts suppliesSupply disruptions increase as fighting in the Middle East intensifies, according to analysts.
Read more »
Australian Dollar depreciates due to risk-off sentiment amid rising Middle-East tensionsThe Australian Dollar (AUD) edges lower against the US Dollar (USD) following the key economic data released on Thursday.
Read more »
European stocks mostly fall on Middle East tensions; Tesco lifts guidanceEuropean stocks mostly fall on Middle East tensions; Tesco lifts guidance
Read more »
NYPD increases security ahead of Rosh Hashanah amid Middle East tensionsThe NYPD says it has increased patrols around synagogues and other sensitive locations, with a particular focus on the upcoming Rosh Hashanah and Yom Kippur observances.
Read more »
Wall Street Shaky Amid Middle East TensionsU.S. stocks are fluctuating as investors navigate a surge in oil prices.
Read more »
Bitcoin hovers around $61,000 amid escalating Middle-East tensionsBitcoin (BTC) recovers slightly on Wednesday, trading above $61,000, after Tuesday’s slump due to the escalating Israel-Iran conflicts.
Read more »