The world economy lost $50 billion due to oil shortages during the conflict with Iran
The global economy has suffered losses of over $50 billion due to the shutdown of crude oil production since the start of hostilities with Iran nearly 50 days ago. According to analytical data, more than 500 million barrels of oil and condensate have left the global market, which experts call the largest disruption to the energy supply system in modern history.
Experts predict that the negative consequences of this shortage will affect world markets for many months or even years.
To illustrate the scale of the losses, analysts note that the volume of oil that has disappeared from the market is equivalent to fully supplying the world’s aviation for ten weeks or stopping all road traffic on the planet for 11 days.
According to experts, the lost 500 million barrels would be enough to cover a month’s worth of energy demand in the United States or the entire oil consumption of European countries over a similar period. Moreover, this volume is equal to six years of work of all units representing the US Armed Forces, based on their average annual fuel consumption.
“More than five hundred million barrels of crude oil and condensate have left the global market, which is the largest disruption of energy supplies in modern history,” analysts of the foreign agency Reuters emphasized.
The Arab countries of the Persian Gulf were hit the hardest, where crude oil production in March fell by 8 million barrels per per day. This figure is comparable to the combined capacity of the world’s two largest energy giants, Exxon Mobil and Chevron. The crisis has also paralyzed jet fuel exports from Saudi Arabia, Qatar, the United Arab Emirates and Kuwait. Supplies from this region fell from 19.6 million barrels in February to just 4.1 million barrels in March and April.
“Since oil prices have averaged around $100 per barrel since the conflict began, these lost volumes represent approximately $50 billion in lost revenue,” said Johannes Raubal, senior analyst at Kpler.
Experts equate the total financial losses from lost oil to a 1% reduction in Germany’s annual GDP or the combined gross domestic product of countries such as Estonia or Latvia. Despite the high cost of a barrel, the physical absence of raw materials creates conditions for a protracted recession in the world’s industrial centers. Further stabilization of the situation depends entirely on the duration of hostilities and the ability of the international community to restore the safety of navigation in the Persian Gulf region.
The energy collapse has already triggered a chain reaction in the transport and industrial sectors, forcing the governments of leading countries to use strategic reserves. The lack of clear prospects for the end of the conflict is intensifying panic on the stock exchanges, where energy prices continue to demonstrate abnormal volatility.
The global energy system will require a radical restructuring and a long time to compensate for the deficit that arose as a result of the greatest geopolitical crisis of the decade.
