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Written by Paul Wiseman for Industrial Info Resources (Sugar Land, Texas)--With 1,600-plus reported dead and dozens taken hostage in Hamas' surprise attacks on Israel on Saturday, energy markets were predictably roiled.
In the aftermath, both West Texas Intermediate (WTI) and Brent Crude reversed weeklong price slumps. Late Monday Brent was up 4.19% from Friday's close, at $88.35 per barrel. WTI was up 4.29% at $86.34 per barrel. Also, Reuters reported that Israel has shut down natural gas production in the Tamar field, the country's second-largest offshore Mediterranean field. The nation's largest natural gas field, Leviathan, continues to produce, said Chevron, which operates both fields. Subscribers to Industrial Info's Global Market Intelligence Oil & Gas Production Plant Database can click here for plant profiles of the Tamar and Leviathan operations.
In 2022, Israel's overall gas production set a new record at 21.9 billion cubic meters, according to data from the nation's energy ministry, with production from Leviathan, Tamar and its smallest field, Karish.
Precious metals also responded by going higher. New York spot prices for gold rose almost $28 per ounce over Friday's close, closing at $1,871 per ounce. That reversed a precipitous late-September crash that saw prices drop from around $1,945 to near $1,870 in about a week.
Middle East Trade
While it would appear that Gaza-based Hamas would have little chance of long-term success against the well-armed and highly trained Israeli army, S&P Global Commodity Insights points out that there may be larger goals in mind for this action. Recent years have seen Israel signing trade agreements with the United Arab Emirates (UAE) (September 2020's Abraham Accords). Says S&P, "According to the Bank of Israel, Israeli imports from the UAE more than doubled, from $3.6 billion in 2019 to $8.3 billion in 2022."
Reuters notes that any serious hostilities could disrupt a pending U.S.-brokered rapprochement between Israel and Saudi Arabia. In return for a defense deal between Washington and Riyadh, the kingdom has offered to normalize relations with Israel.
The Saudis also offered hope for lower oil prices, on Friday reportedly informing the White House that the deal would include a boost in production by early next year. That would ease a current agreement between Saudi Arabia and Russia to cut production by 1.3 million barrels per day through December.
Shipping Lanes
As Israel is a hotbed of electronics development and manufacturing, the safety of port cities is also of note, says maritime safety tracker Dryad Global. The Mediterranean ports closest to Gaza, Ashkelon and Ashdod, are at greatest risk. In fact, Dryad Global referenced social media posts from Ashkelon showed vehicles ablaze at the port there, presumably from Gaza-launched missiles. Due to the missiles' short range, the more northerly port at Haifa and the Red Sea port of Eilat are considered to be at little risk.
Should hostilities continue or escalate, says the report, "Commercial undertakings are bound to face disruptions in the immediate future. Prolonged disturbances at Israel's three largest ports--Haifa, Ashdod, and Eilat--could severely hamper imports and exports, encompassing vital sectors like agriculture, electronics, and machinery."
Although Israel exports much of its gas, it has relatively little oil and natural gas liquids (NGL) production, importing almost all of those from Turkey, Russia, Nigeria and Gambon, in order from highest to lowest.
According to S&P Global Ratings, Israel's two refineries are in those port cities of Haifa and Ashdod, processing 197,000 barrels per day and 110,000 barrels per day, respectively. GMI subscribers can click here for profiles on the refineries.
Reports also say that most non-Israeli airlines have canceled flights, as some danger has been noted near the country's main international airport at Tel Aviv. Turkish Airlines is an exception. Israel's national airline, El Al, has been unavailable to the public, instead tasked with bringing home as many Israeli Defense Force (IDF) reservists from the U.S. and other countries as possible. Israel has called up 300,000 troops to beef up security, not only around Gaza but also to protect the country's northern border against possible attacks from Hezbollah.
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 200,000 current and future projects worth $17.8 Trillion (USD).
In the aftermath, both West Texas Intermediate (WTI) and Brent Crude reversed weeklong price slumps. Late Monday Brent was up 4.19% from Friday's close, at $88.35 per barrel. WTI was up 4.29% at $86.34 per barrel. Also, Reuters reported that Israel has shut down natural gas production in the Tamar field, the country's second-largest offshore Mediterranean field. The nation's largest natural gas field, Leviathan, continues to produce, said Chevron, which operates both fields. Subscribers to Industrial Info's Global Market Intelligence Oil & Gas Production Plant Database can click here for plant profiles of the Tamar and Leviathan operations.
In 2022, Israel's overall gas production set a new record at 21.9 billion cubic meters, according to data from the nation's energy ministry, with production from Leviathan, Tamar and its smallest field, Karish.
Precious metals also responded by going higher. New York spot prices for gold rose almost $28 per ounce over Friday's close, closing at $1,871 per ounce. That reversed a precipitous late-September crash that saw prices drop from around $1,945 to near $1,870 in about a week.
Middle East Trade
While it would appear that Gaza-based Hamas would have little chance of long-term success against the well-armed and highly trained Israeli army, S&P Global Commodity Insights points out that there may be larger goals in mind for this action. Recent years have seen Israel signing trade agreements with the United Arab Emirates (UAE) (September 2020's Abraham Accords). Says S&P, "According to the Bank of Israel, Israeli imports from the UAE more than doubled, from $3.6 billion in 2019 to $8.3 billion in 2022."
Reuters notes that any serious hostilities could disrupt a pending U.S.-brokered rapprochement between Israel and Saudi Arabia. In return for a defense deal between Washington and Riyadh, the kingdom has offered to normalize relations with Israel.
The Saudis also offered hope for lower oil prices, on Friday reportedly informing the White House that the deal would include a boost in production by early next year. That would ease a current agreement between Saudi Arabia and Russia to cut production by 1.3 million barrels per day through December.
Shipping Lanes
As Israel is a hotbed of electronics development and manufacturing, the safety of port cities is also of note, says maritime safety tracker Dryad Global. The Mediterranean ports closest to Gaza, Ashkelon and Ashdod, are at greatest risk. In fact, Dryad Global referenced social media posts from Ashkelon showed vehicles ablaze at the port there, presumably from Gaza-launched missiles. Due to the missiles' short range, the more northerly port at Haifa and the Red Sea port of Eilat are considered to be at little risk.
Should hostilities continue or escalate, says the report, "Commercial undertakings are bound to face disruptions in the immediate future. Prolonged disturbances at Israel's three largest ports--Haifa, Ashdod, and Eilat--could severely hamper imports and exports, encompassing vital sectors like agriculture, electronics, and machinery."
Although Israel exports much of its gas, it has relatively little oil and natural gas liquids (NGL) production, importing almost all of those from Turkey, Russia, Nigeria and Gambon, in order from highest to lowest.
According to S&P Global Ratings, Israel's two refineries are in those port cities of Haifa and Ashdod, processing 197,000 barrels per day and 110,000 barrels per day, respectively. GMI subscribers can click here for profiles on the refineries.
Reports also say that most non-Israeli airlines have canceled flights, as some danger has been noted near the country's main international airport at Tel Aviv. Turkish Airlines is an exception. Israel's national airline, El Al, has been unavailable to the public, instead tasked with bringing home as many Israeli Defense Force (IDF) reservists from the U.S. and other countries as possible. Israel has called up 300,000 troops to beef up security, not only around Gaza but also to protect the country's northern border against possible attacks from Hezbollah.
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 200,000 current and future projects worth $17.8 Trillion (USD).
