When turmoil hits the Middle East, one of the first questions everyone asks is: “How much oil is at risk?”
Before prices crashed again, oil was actually rallying for a little while on Monday. News outlets and energy pundits were quick to attribute the early upward moves to Libya, where a rocket attack caused an oil storage tank fire. Turmoil in the region could lead to a disruption in oil supply. Because Libya is known to be a big player in the oil markets, this was a decent rationale.
But how big a player is Libya really?
It’s about 1% of total global oil production.
In JP Morgan Funds’ monthly guide to the markets, David Kelly and his team offer this map showing what percentage of the world’s liquid energy is produced by each country or flows through a waterway in the Middle East.
The countries in the Middle East are sitting on oceans of oil and gas. So, whenever there’s any news about escalating tension or turmoil in the Middle East, we can’t help but wonder how much energy is exposed to disruption. This map helps to answer those questions.