Global energy market, crisis agencies monitor war impacts in Syria
Alongside a combination of factors for example weather patterns, geopolitical tensions, and changes in supply-demand dynamics, the Russia-Ukraine and Middle East wars prevail the rise of oil price.
Nov. 30th, 2024
ERBIL, Kurdistan Region (Kurdistan 24) – According to the November Recap Reports 2024 by the international energy monitors and crisis organizations, the energy prices saw significant fluctuations.
Alongside a combination of factors for example weather patterns, geopolitical tensions, and changes in supply-demand dynamics, the Russia-Ukraine and Middle East wars prevail the rise of oil price.
Alerting about the risks of a wider Middle East war could lead to more catastrophic consequences, has been made and reiterated.
The rise of fighting in Syria over past several days, alongside the long-running regional conflict for a long time, impacted directly on oil prices.
Read More: What to know about sudden rebel gains in Syria's 13-year war and why it matters
According to the reports, Syria's oil production capacity is currently less than 400,000 barrels per day.
The largest oil fields across Syria are located in the areas controlled by the Syrian Democratic Forces (SDF), it is understood that the U.S. is responsible for protecting some of those wells, the cities like Hasaka, Deir Ezzor and Raqqa contain Syria's largest oil wells,
It is believed that the produced oil in these fields is sold in four main ways:
- Part of it is used to meet domestic needs.
- Another part of it is to sell to the Syrian regime at a discounted price.
- Some of the oil is sold to groups supported by Turkey that dominate several regions.
- According to media outlets statements, a small part of the oil is sent to Iraq and sold in the black market.
- However, the possibility of a potential war-expanding after Aleppo and already approaching Raqqa, will impact the oil market more than what it is facing, currently.
Another possible omens, is that the fighting to remain limited to the borders of Aleppo and Idlib, which will not have much impact on the energy market and oil prices because the location is thought to be away from those oil fields have high oil production capacity.
Updated