As Beirut Gets Hit, Brent Marches Toward $90

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Written by Daniel Graeber for IIR Energy Intelligence (Sugar Land, Texas)

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Summary

Conflict in the Middle East has led to a 26% spike in crude oil prices in the span of a week. Overnight, Israeli forces pounded Hezbollah strongholds in Lebanon.

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Red Cross Growing Concerned

Energy prices continued to rally on Friday, with Brent crude oil running toward $90 per barrel as war in the Middle East spreads to Lebanon.

Israeli forces overnight pummeled the southern suburbs of Beirut, a stronghold for the Iranian proxy Hezbollah. The International Committee of the Red Cross warned of a humanitarian disaster given that hundreds of thousands of people are displaced in what's turning into a war zone.

Lebanon has few onshore energy reserves and no refineries. Industrial Info finds a handful of energy-storage and power facilities that could be impacted, such as the MEDCO refined products storage facility in the Lebanese capital that can handle around 314,000 barrels.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Terminals and Power plant databases can learn more about Lebanon's energy sector--including capacities, investment values and necessary equipment--from this detailed list.

Meanwhile, traffic in the Persian Gulf and Strait of Hormuz remains a concern for the global crude oil market given the hefty volumes of crude oil and liquefied natural gas moving through the region.

With the conflict spreading, and with no end game in sight, energy markets continued their rally. The price for Brent crude oil, the global benchmark, was up nearly 4% in pre-market action on Friday to flirt with $90 per barrel. One week ago, a barrel of Brent fetched $72.48.

The Dutch Title Transfer Facility, which serves as the European benchmark for the wholesale price of natural gas, was up 3% to $52.41 per million British thermal units, a 62% increase over week-ago levels.

Tamas Varga, an analyst at London oil broker PVM, said he believes U.S. President Donald Trump would go for an easy claim to victory given mounting political, public and even economic pressure to end the conflict.

"The United States remains a functioning democracy," he wrote in his Friday newsletter. "Although political checks have weakened, stock markets and bond yields still exert a credible restraining influence on the president."

IIR Energy Intelligence continues to monitor regional energy structure and notify clients of any related incidents.

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About IIR News Intelligence
IIR News Intelligence is a trusted source of news for the industrial process and energy markets, powered by Industrial Info Resources' Global Market Intelligence (GMI).

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).