Crude Prices Set to Rise as Middle East Supply Losses Bite

Kpler's oil expert Matt Smith expects crude prices to continue rising as six and a half months of Middle East supply losses take their toll on global markets.

The conflict has resulted in approximately 8.5 million barrels per day of lost oil production, with refinery runs also significantly reduced due to the damage.

This has led to a severe shortage of diesel fuel, particularly as Russia struggles with its own refinery output issues stemming from Ukrainian drone strikes and export restrictions.

Saudi Arabia's East-West pipeline remains damaged, which could result in an additional 100-120 million barrels lost if the outage lasts for a month, according to Smith.