Khaberni - The American-Israeli war on Iran has disrupted oil and natural gas exports from the Middle East, forcing Qatar and Iraq to halt production.
Here is a look at the disturbances in the energy sector so far:
* Production Halt
Iraq cuts production: Officials said that the second largest producer in the Organization of the Petroleum Exporting Countries (OPEC) has reduced its production by about 1.5 million barrels per day, nearly half of its output due to limited storage capacity and lack of export facilities. They added that the country may have to stop producing three million barrels per day, almost its entire production, within days if exports do not resume.
Qatar Energy halts natural gas liquefaction: The Gulf state halted operations at its liquefied natural gas facilities on Monday, affecting some of the largest factories in the world and a source that supplies about 20 percent of the world’s liquefied natural gas. Qatar Energy also stopped part of its production in the refining sector yesterday, Tuesday.
Disturbances in Saudi Arabia: The largest oil-exporting country in the world has halted production at the Ras Tanura refinery with a capacity of 550,000 barrels per day and began rerouting crude oil shipments from the eastern ports to Yanbu on the Red Sea.
Other disruptions: Israel and the Kurdistan Region of Iraq have also reduced part of their oil and gas production.
A fire broke out due to falling debris at the Fujairah port in the UAE, a major global center for oil storage and ship refueling.
* Shipping
The Strait of Hormuz: Closed for the fourth day after Iran attacked five ships, closing a vital artery through which about 20 percent of the world’s liquefied oil and natural gas supplies pass.
Iran announces the closure of the strait: A senior official in the Iranian Revolutionary Guard announced the closure of the Strait of Hormuz on March 2, warning that Iran would fire at any ship attempting to pass.
War risk insurance cancellation: Major maritime insurance companies have begun canceling war risk coverage for ships operating in Iranian, Gulf, and neighboring waters.
* Impact on Consumers
China reduces refining operations: Chinese refineries have started shutting down crude oil refining units or advancing scheduled maintenance due to the disruption of crude oil flow.
India looks for alternatives: A government official said India is looking for alternative sources of crude oil, liquefied petroleum gas, and liquefied natural gas if the crisis continues for a period exceeding 10 to 15 days.
Indonesia changes supply origins: Indonesia plans to increase its imports of American crude oil to compensate for the reduced supplies from the Middle East.
