Iran War Adds $330 Billion to Global Energy Import Bill
Now It May Help Break It Apart China represents Washington’s biggest test,… What I Cover Irina Slav has been writing about global energy markets since 2007, covering the oil and gas industry, energy security, commodities, and the… The war between the United States, Israel, and Iran has caused the oil and gas import bill of the world to swell by as much as $330 billion over the six months between March and August.
That’s despite a smaller-than-feared oil price climb and equally smaller-than-feared rise in gas prices.
The datacomes from the Finland-based climate think tank Centre for Research on Energy and Clean Air, and it refers to money paid to import oil, fuels, and LNG versus what analysts had forecast as prices for the period.
The outlet called the Persian Gulf disruption the biggest one since the 1990 Gulf War, with the European Union the region to suffer the most financial pain.
The biggest share of the total extra import bill came from crude oil, which accounted for $164.1 billion of the total.
Next came diesel and gasoil, which accounted for $73.8 billion, and gasoline, which accounted for $35.7 billion of the total extra cost of energy imports.
Liquefied natural gas was $38 billion more expensive for importers than it could have been, and jet fuel booked an extra import cost of $20 billion.
According to the figures CREA released this week, the European Union saw its energy import bill surge by $78 billion in the six months between March and August versus what analysts expected.
The reason is that the EU is highly dependent on oil and gas from abroad, notably U.S.
crude and liquefied natural gas, because of its sanctions on Russian hydrocarbons and the absence of any meaningful domestic production of either oil or gas.
Besides, the EU’s largest local supplier of the energy commodities, Norway, has limits to how much it can export to its partner bloc.Related: Gas Prices in Asia and Europe Jump as Qatar Extends LNG Force Majeure Next on the list of biggest sufferers from the war’s impact on energy commodity prices was China, which paid an extra $35 billion over the six months to August.
China is the world’s biggest crude oil importer and also the world’s biggest LNG importer.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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