Oil markets and geopolitics

In this interview given to Rajini Vaidyanathan from BBC News, Dr. Carole Nahkle, CEO of Crystol Energy, discusses the impact of the Israeli-Iranian attacks on oil prices.

Dr Carole Nakhle discusses the impact of the Israeli-Iranian attacks on oil prices with BBC News

Key takeaways:

– Iran is still an important oil producer despite years of sanctions and strained relations with the west.

– If the direct attacks between Israel and Iran happened twenty years ago, the effect on oil prices would have been much bigger than today. Despite the seriousness of the situation, oil prices were barely impacted.

– This reflects the level of transformation oil markets have gone through in recent years.

– The absence of supply disruptions and comfortable spare capacity in the system have also dampened the impact of geopolitics.

– Iranian oil exports in Iran have reached a 6-year high, indicating that Iran is still able to bypass sanctions or/and the enforcement of sanctions have become more lenient particularly since the Biden Administration took office. China is Iran’s largest buyer of oil.

-Even amidst the maximum pressure exerted by the US under Trump’s administration, Iran continued to export half a million barrels of oil per day (mb/d).

Related Analysis

Oil markets: Relative stability amid geopolitical strife“, Dr Carole Nakhle, Feb 2024

Asia’s energy market: The new global epicenter“, Dr Carole Nakhle, Dec 2023

A rising China is reshaping global energy markets“, Dr Carole Nakhle, Nov 2023

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