Geopolitical Tensions Roil Global Oil and Gas Markets

Tensions in the Middle East are continuing to drive volatility in global oil and gas markets, according to the latest reports from maritime industry news sources. Crude oil prices have rebounded this week, with West Texas Intermediate (WTI) futures rising above $98 per barrel on Tuesday. This comes as investors assess the impact of conflicts in the region on global supply, according to *Hellenic Shipping News*. Iran has stepped up attacks on energy infrastructure, while most countries have so far resisted calls to increase production to offset the losses. Looking further ahead, Bank of America has raised its 2026 oil price forecast, warning that the Iran conflict has "wiped out" the global energy surplus and created a more fragile outlook. "The regime alteration scenario" could push prices significantly higher, the bank's analyst Francisco Blanch said in a note to clients. Meanwhile, the liquefied natural gas (LNG) market may lack the capacity to offset any supply disruptions in the Strait of Hormuz, according to Yukio Kani, global CEO and chairman of JERA, Japan's largest power generation company. "There is no capacity to bridge the gap, that's the reality," Kani told *Hellenic Shipping News*. This comes as Shell forecasts global LNG demand to surge up to 85% by 2050, driven by the energy transition away from dirtier fuels. The company estimates demand will rise 54-68% by 2040 and 45-85% by 2050 from 422 million metric tons per annum in 2025. On a more positive note, China's crude oil production returned to growth in the first two months of 2023, while crude processing and natural gas output also continued to expand, according to data from the National Bureau of Statistics.