COMPETITIVE · MARKET STRUCTURE · MIDDLE EAST
Iran attacks oil and gas production facilities
Change
Iran attacked oil and gas production facilities, including a drone strike on the Shah gasfield in the UAE, strikes on Iraq’s Majnoon oilfield, and damage at Fujairah port and oil storage facilities.
Why it matters
Brent crude rose 2.3% to almost $103 a barrel and stood about 50% above levels before the war began on 28 February. Wholesale gas prices rose nearly 3% to about €52 per megawatt hour, versus roughly €30 before the war. For the first time since the conflict began, attacks targeted oil and gas production facilities rather than only refineries, terminals and storage. A drone strike set the Shah natural gasfield on fire and suspended operations while officials assessed damage; Majnoon and Fujairah were also struck.
Implications
- · Operations at the Shah gasfield are suspended pending damage assessments.
- · Damage at Fujairah’s port and oil storage facility disrupts operations at that regional storage hub.
- · Strikes on Majnoon disrupt production operations at that Iraqi oilfield.
- · Brent trading near $103 per barrel and wholesale gas around €52/MWh establish current market price reference levels.
Who is affected
- · Upstream oil and gas operators
- · Port and terminal operators
- · Oil and gas traders and buyers
Source
Topics
Business & Markets Markets Supply Chain & Logistics Energy & Power Oil & Gas