Episode 1439: Think Tank: Energy, chemicals, fertilizers roiled by Middle East war

ICIS experts discuss the immediate and longer-term impact of the Middle East conflict with rising prices likely to fuel inflation, hurting downstream demand.

- Crude oil spike cushioned by reserves, “wait and see” attitude

- Duration of war is the key to impact on all commodities

- Oil prices could spike to triple figures, trigger talks to reopen Strait of Hormuz

- Qatari LNG plant is biggest in the world and has been shut down

- Around 20% of global LNG supply has been cut off

- Power, carbon prices see changed dynamics

- Record high sulphur prices may now move even higher

- Other fertilizer prices rising, urea faces particular challenges

- Supply shock ahead of planting season will pressure farmers

- Food prices likely to rise

- Chemical producers may struggle to pass on price hikes, pressuring margins

- Lack of Middle East chemicals and feedstocks already hurting Asia, may impact Europe

- Europe chemicals could gain if local customers return to more local sourcing during war

Navigate to 01:24 for crude oil commentary, 09:43 for natural gas, 17:43 for power, 23:18 for fertilizers and 37:00 for chemicals.

In this ICIS Think Tank podcast, Will Beacham interviews ICIS Insight Editor Tom Brown, ICIS head of oil markets Ajay Parmar, ICIS gas editor Ed Cox, ICIS power editor Andrea Battaglia, Andy Hemphill and Deepika Thapliyal from the ICIS fertilizer team and Tom Brown, ICIS Insight editor.