ANZ: Gulf countries may shut down oil wells, increasing supply risks

Golden Ten Data reported on March 12 that ANZ Bank analysts stated that one risk not yet fully reflected in oil prices is that, if regional disturbances persist, Gulf oil-producing countries may begin shutting down oil wells as early as the end of March. Many operators in the region rely on a continuous and stable power supply, steady oilfield staffing, and water-gas injection systems to maintain production. However, ongoing instability may force companies to suspend production in order to protect reservoirs and ensure the safety of workers. Analysts said: "Once oil wells are shut down, resuming production will neither happen immediately nor can it be guaranteed. At that point, the market's focus will shift from export routes and shipping risks to the actual decline in upstream supply."