The United States and Iran war has had profound effects on global crude oil trade flows. This conflict has not only led to a reduction in the volume of oil reaching the market but has also created a structural shortage of a specific type of crude oil that complex global refineries heavily rely on.
Impacts on the Crude Oil Market
According to statistics, complex refineries require high-quality sweet crude oil, which is currently unavailable due to military tensions. This shortage has particularly impacted global markets and caused crude oil prices to rise. For instance, last month, the price of Brent crude oil reached over $90 per barrel, indicating an increase in demand for high-quality crude oil.
Challenges Facing Refineries
Refineries are facing multiple challenges in securing their needs for sweet crude oil. This type of crude oil is highly suitable for conversion into higher-value products, such as gasoline and diesel, due to its specific characteristics. However, the limitations caused by the war and the reduction in supply have severely impacted and led to a crisis in raw material supply.
Reports indicate that currently, refineries are trying to find new and alternative sources to meet their needs, but this process is time-consuming and costly. In this regard, countries that depend on sweet crude oil are exploring new strategies to manage the crisis and mitigate its impacts on domestic and global markets.
Ultimately, this war and its consequences could lead to structural changes in the oil market and increase the need for new and innovative solutions in the oil and gas industry.
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