The weekly report of the Al-Attiyah Energy Foundation confirmed that oil prices are at their highest levels since 2022 in light of additional disruption to supplies from the Middle East.
The report added: Crude oil futures jumped last week to their highest levels in nearly four years, with the escalation of the conflict in the Middle East and the widening of supply disruptions, which led to increased concerns about the shortage of global energy supplies.
Brent crude contracts settled at $112.19 per barrel, while US West Texas Intermediate (WTI) crude ended trading at $98.32. On a weekly basis, Brent crude oil rose by 8.8%, while WTI crude oil recorded a slight decline of 0.4%.
Expectations prevail in oil markets that the supply disruption will continue for a longer period, following the recent attacks on energy facilities, with expectations that the reopening of the vital Strait of Hormuz may take at least several weeks. About 20% of the world’s oil and liquefied natural gas supplies pass through the strait.
At the same time, media reports, including the Axios website, reported on Friday that the Trump administration is considering plans to control Iranian Kharg Island, with the aim of pressuring Tehran to reopen the Strait of Hormuz, which may increase pressure on supplies.
Spot liquefied natural gas prices in Asia recorded their highest levels since the end of 2022 last week, following statements by the CEO of Qatar Energy Company, Saad Al Kaabi, to Reuters that the Iranian attacks led to the disruption of about 17% of Qatar’s liquefied natural gas export capacity.
The average LNG price for May delivery to Northeast Asia was about $25.30 per million British thermal units, compared to $19.50 per million British thermal units the previous week.
High prices have led to a decline in demand, with South Asian countries such as Pakistan, India and Bangladesh showing greater reluctance to buy high-cost spot cargoes, turning instead to using coal or reducing consumption.
In Europe, the Dutch gas reference price (TTF) settled at $20.42 per mmBtu on Friday, recording a weekly gain of 19.1%. Relatively cool temperatures and lower wind speeds in northwest Europe, coupled with strong demand for spot cargoes in South Asia, are expected to support continued upward momentum for prices.
