Potential Threats to Middle Eastern Energy Facilities Could Spike Oil Prices

Rystad Energy warns that potential attacks on key energy facilities in Saudi Arabia, the UAE, and Qatar could drive oil prices above $120 per barrel. According to Odaily, these facilities, which Iran has identified as targets, account for about 20% of global liquefied natural gas trade, 10% of Asia-Pacific naphtha imports, and 6% of global polyethylene capacity. These critical infrastructures are located in a region with limited short-term alternatives. Rystad Energy analysts suggest that if the threats reported by Iran's Tasnim News Agency materialize, the combined facilities in these countries could see a daily loss of at least 700,000 barrels of refined product capacity. This would impact the supply of diesel, jet fuel, and naphtha in Saudi Arabia, the UAE, and Qatar. A strike on crucial infrastructure, such as Saudi Arabia's Yanbu port, could push oil prices to $150 per barrel or higher.