Hebrew media says attack on Iranian oil fields could negatively impact China's interests
Date
10/9/2024 4:17:21 AM
(MENAFN) A Hebrew newspaper reported on Tuesday that an attack on Iranian oil fields could negatively impact China's interests, as China imports approximately 90 percent of Iran's oil exports at favorable prices, saving billions of dollars annually. If Iranian oil production were to be halted or damaged due to an expected Israeli strike, it could significantly disrupt this relationship. In response, Iranian Oil Minister Mohsen Paknejad visited major oil and gas facilities in Iran, including the key industrial city of Asaluyeh, to reinforce business continuity.
The international press has been extensively covering the potential consequences for the global energy market if Israel were to target Iranian oil infrastructure following the recent missile attack on Israel. The newspaper highlighted that while Iran's oil production is recovering, it remains at around 3.5 million barrels per day, accounting for about 4 percent of global oil demand, with approximately half of this production being exported. Although Iran claims it earned about USD35 billion from oil exports last year, which is crucial for its economy and funding its military, data from the country’s oil industry is often met with skepticism.
Iran's oil sector consists of 10 major refineries, with the largest facilities located in Isfahan, Abadan, and Bandar Abbas. These refineries are responsible for producing a significant portion of the country's oil, which is essential for meeting domestic energy needs. While an extreme scenario involving a total halt to Iranian oil production due to an Israeli attack is deemed unlikely, the newspaper noted that the global oil market could potentially absorb the impact of such a disruption.
Despite rising tensions in the Middle East, oil prices have not increased as much as anticipated. Since the Iranian missile attack on Israel, oil prices in the global market have risen, but Brent crude is trading around USD80 per barrel, while West Texas Intermediate is near USD76. The uncertainty in oil prices, despite regional instability, is attributed to mitigating factors such as slowing economic growth in China and the European Union, which are expected to curb global demand for oil.
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