Iran War Sends US Crude Futures Up 12% a Barrel

US crude futures climbed 12% on Friday as disruptions to global oil supplies continue due to the expanding U.S.-Israeli war with Iran. Brent crude futures settled at $92.69, and U.S. West Texas Intermediate crude (WTI) finished at $90.90. For the week, Brent rose 27.9%, while WTI rose 35.6%.The conflict has spread across the Middle East’s key energy-producing areas, disrupting output and forcing shutdowns of refineries and liquefied natural gas plants.

Qatar’s energy minister told the Financial Times he expects all Gulf producers to shut down exports within weeks, a move he said could drive oil to $150 a barrel.

About 20% of global oil demand normally passes through the Strait of Hormuz each day. With the Strait effectively closed for seven days, roughly 140 million barrels of oil, equivalent to about 1.4 days of global demand, have been unable to reach the market.

Asia Spot LNG Prices at 3-Year High as US-Iran Crisis Prompts Qatari Supply Halt

Asia spot liquefied natural gas prices more than doubled compared to last week and reached their highest level in over three years after a production halt by Qatar, which provides 20% of global LNG supply, has resulted in a scramble for gas. The average LNG price for April delivery into north-east Asia was $22.50 per million British thermal units, down from $10.40 per mmBtu the week before.

The market repriced sharply last week as it absorbed Qatari shut-ins and restrictions in the Strait of Hormuz. With little marginal supply available, U.S. cargoes are likely to reroute to Asia as arbitrage opens and prices there command a premium over Europe.

In Europe, the Dutch TTF gas price settled at $18.07 per mmBtu on Friday, posting a weekly gain of over 60 percent. Europe appears to be losing the bidding war with Asian competitors over US cargoes.

— By The Al-Attiyah Foundation