Analysts: oil prices are likely to remain around current levels this year.
OPEC+ producers now have sufficient spare capacity to potentially counter extreme market tightness and disruptions to oil flows that could result from geopolitical risks in the Middle East.
As of November 2023, the OPEC+ alliance held 5.1 million barrels per day (bpd) of spare oil production capacity—or about 5% of global demand.
Oil prices rose on Thursday after an oil tanker was boarded by an armed group in Oman, raising the prospect of escalating conflict in the Middle East.
February WTI crude oil (CLG24) on Thursday closed up +0.65 (+0.91%), and Feb RBOB gasoline (RBG24) closed up +4.70 (+2.27%).
Middle East oil and gas operators will need to be vigilant about the risk of cyberattacks as the Israel-Gaza conflict continues, security experts warn, or else risk energy supply disruption globally.
The energy sector is poised for a moderately lower start, pressured by low conviction weakness in the underlying commodities and in the broader equity futures. Equity sentiment steadied this morning following the recent run up in the benchmark indices as the markets assessed some disappointing retail results and looked ahead to the release of the Federal Reserve meeting minutes.
The Middle East also stands out as the only region where upstream oil and gas investments have exceeded pre-pandemic levels.
Kenera has secured a contract to deliver five top drives and five iron roughnecks to Arabian Drilling for new build rigs to operate on a major project in Saudi Arabia.
Iran is calling for an oil embargo on Israel over the latest deadly air strikes on the Gaza Strip amid growing tensions in the Middle East just as U.S. President Joe Biden arrived in Israel.
Global gas demand is projected to rise in the next decade, thus influencing a 12.5% surge in production between 2023 and 2030.