New Delhi, March 17 (IANS). The turmoil in the global oil market due to the Iran war may affect petroleum products like diesel and jet fuel more than crude oil. This information has come out in a report by Goldman Sachs Group.
According to the report, the prices of many refined products (such as diesel and jet fuel) are rising more than that of crude oil. Analysts said that due to severe disruption in the supply of medium and heavy crude, the production of diesel, jet fuel and fuel oil may reduce.
The US and Israel’s war against Iran has shaken the global energy market. This conflict began on February 28 and has now entered its third week, affecting the entire Middle East region.
The conflict has led to a halt in exports of oil and petroleum products through the Strait of Hormuz, and has also led to attacks on several energy infrastructure in the region. This has forced oil producers to reduce production and some refinery operations.
According to reports, crude oil prices have increased by more than 40 percent since the first attacks, with Brent crude crossing $100 per barrel.
However, the prices of petroleum products like diesel and jet fuel have increased even more. Fuel prices have doubled in some parts of Asia, and countries such as China, Thailand and South Korea have limited exports to protect their domestic markets.
Experts say that no area is completely safe from this crisis. The war has made it difficult for Persian Gulf countries to export refined products, closing refineries and reducing the supply of crude used to make fuels like diesel.
Goldman Sachs report said that about 60 percent of the crude oil produced from the Persian Gulf is medium and heavy crude, which is mainly used to make diesel, jet fuel and fuel oil, for which alternatives are also limited.
This global crisis will also affect naphtha, which is used in making petrochemicals and is an essential raw material for many industries.
The report further said that Asia sources about 50 percent of its naphtha from the Persian Gulf region, while Europe depends on this region for 40 percent of its jet fuel. In such a situation, this crisis can have a major impact on fuel supply and prices globally.
–IANS
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