- Middle East conflict drives European energy crisis and inflation
- Global energy prices are experiencing shocks due to ongoing conflicts in the Middle East.
- Loss of Middle Eastern oil supply routes.
Middle East Disruptions Tighten Global Supply of Lubricants and Base Oil
What happened
Disruptions in the Middle East are impacting the availability of key ingredients for synthetic engine oils and driveline lubricants. This supply pressure is particularly acute for Group III base oils, which are used in many synthetic engine oil formulations. Shell and the American Petroleum Institute described these supply constraints.
From truckinginfo.com
Why it matters
The tightening supply is causing trucking fleets to pay higher costs for lubricants. The American Petroleum Institute has extended emergency provisions allowing engine oil marketers to change approved formulations when ingredients become unavailable.
Global energy prices are experiencing shocks due to ongoing conflicts in the Middle East, which involves the loss of Middle Eastern oil supply routes.
From truckinginfo.com
Who's involved
- Middle EastGeopolitical region where supply disruptions are occurring
- ShellCompany that noted supply constraints in the market
- ExxonMobilCorporation whose core operations could be affected by input costs
- West AsiaGeopolitical region experiencing tightening base oil supply
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- ExxonMobilSpeculative
ExxonMobil might face increased input costs for base oils, affecting core operations.
- West AsiaSpeculative
West Asia could face increased risk due to geopolitical disruptions tightening critical base oil supply.
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The entities involved
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Middle East
geopolitical region encompassing Egypt and most of Western Asia, including Iran
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Shell
British multinational oil and gas company
Related events
- Supply disruptions are occurring due to the ongoing war in the Middle East.
- Rising crude oil prices are attributed to ongoing tensions in the Middle East.
- The United States is reportedly aiming to gain control over the oil resources sourced from the Middle East.
- There is currently a lack of immediate supply risks in the Middle East.
- Oil prices are tied to geopolitical tensions in the Middle East, specifically involving Shell.