The Saudi Arabia economy is showing resilience despite a sharp hit to oil production from regional conflict, with a surge in crude prices helping offset the impact, according to a report by Al Rajhi Capital.
Oil prices surged past the $105 threshold on Friday as an escalating maritime standoff between Iran and the United States in the Strait of Hormuz rattled global energy markets.
Conflict between the US, Israel and Iran has disrupted Strait of Hormuz shipping, exposing limited export alternatives. Existing pipelines offer partial relief, while proposed routes face major political, security and financial challenges.
Oil prices jumped on Wednesday (April 22) with Brent trading above $100 a barrel, erasing earlier losses following reports of gunfire attacks on at least three container ships in the Strait of Hormuz.
Assala Gabon announced the start of production from the Grand N'Gongui (GNG) field. The field contains a 10–15 metre oil rim within the Gamba Formation, with up to 350 MMstb of stock tank oil initially in place (STOIIP).
Oil prices jumped more than 5 per cent on Monday (April 20), on fears that the ceasefire between the US and Iran could collapse after the US seized an Iranian cargo ship, while traffic through the Strait of Hormuz stayed largely halted.
The nearly two-month-long conflict involving US, Israel and Iran has inflicted a heavy toll on global energy markets, erasing tens of billions of dollars in potential oil output and triggering one of the most severe supply disruptions in recent history.
Integrated Global Services (IGS) research shows 46 per cent of oil and gas assets in Saudi Arabia and UAE operate beyond design life, with 83 per cent still confident in performance despite downtime losses and growing focus on efficiency and reliability.
Energy disruptions from the Iran war strain Gulf oil and gas exporters, while importers like Egypt and Jordan face higher commodity prices and reduced remittances from Gulf workers, worsening economic pressures across the region, said the International Monetary Fund (IMF).
A convoy of eight tankers - comprising one very large crude oil carrier (VLCC) and chemical tankers - was crossing the Strait of Hormuz on Saturday, data showed, as some ship owners said they hoped Tehran would allow them to leave the Gulf during a short ceasefire window in the Iran war.
