With tensions in the Middle East high, I have fielded a number of queries on how this might impact the world’s oil markets. Today I want to explore that issue. The Middle East presently produces about a third of the world’s oil. The most important producers there, ranked according to 2018 production, are: Saudi Arabia – 12.3 million barrels per day (BPD) Iran – 4.7 million BPD Iraq – 4.6 million BPD United Arab Emirates (UAE) – 3.9 million BPD Kuwait – 3.0 million BPD Qater – 1.9 million BPD For reference, U.S. oil production in 2018 (per the BP Statistical Review) was 15.3 million BPD, which was more than the total from Iran, Iraq, and the UAE. (That number includes natural gas liquids, as do the numbers above). It is also important to note that sanctions on Iran have impacted its ability to export oil. According to OPEC’s […]