#lng-market-disruption

#lng-market-disruption

Crude costs dominate, representing roughly 51% to 52% of the U.S. retail price. When the Strait of Hormuz disrupted roughly one-fifth of global oil and LNG flows during the 2026 Iran conflict, Asian physical crude surged toward $150 per barrel while WTI held near $100.72, insulated by U.S. shale output and Canadian and Mexican imports.

Roughly 20 million barrels per day of oil moved through Hormuz in 2024, equivalent to about one-fifth of global petroleum liquids consumption. When that waterway closed, oil prices spiked to $126 per barrel in what the U.S. Energy Information Administration has described as the largest supply disruption in global oil market history.

Viper owns mineral and royalty interests, primarily in the Permian Basin. Royalty owners collect a percentage of production revenue from every barrel of oil, cubic foot of natural gas, and barrel of natural gas liquids produced on their acreage without bearing drilling costs or capital expenditures.

Citi's upgrade reflects a broader geopolitical reality reshaping global energy markets. The Iran war is accelerating the flight of European and Asian buyers toward secure, long-term U.S. LNG supply contracts.

"Fortunately, our relations with Russia remain good," Anwar Ibrahim, Malaysia's prime minister, told local publication Sinar Harian. "Therefore, the Petronas team can negotiate with them."

Shipping costs have increased by more than 10 percent in the past month due to the US-Israel war on Iran. The 60-day waiver for the Jones Act aimed to lower energy costs but has had little impact on oil prices, which continue to rise amid the ongoing conflict.

QatarEnergy on Monday suspended LNG production following a drone attack, straining the global market. The measure followed Iranian drone attacks on a water tank at a power plant in Mesaieed Industrial City and an energy facility in Ras Laffan belonging to QatarEnergy, the world's largest LNG producer.