Amid War With Palestine, Where Does Israel Source Its Oil From?

Israel has three terminals for crude oil imports, Ashkelon and Haifa on the Mediterranean coast, and Eilat on the Red Sea. Ashkelon is the most important one, handling about 180,000 barrels per day.

Reuters

New Delhi: The Middle East is a major source of oil and gas for the world, with nearly half of the proven reserves and a third of the production. Any military conflict in the region can disrupt the energy markets and cause oil prices to surge. However, most of the time, these price spikes are short-lived, as they do not affect the key oil producers or strategic areas. This was the case when Hamas attacked Israel in the past, or when Syria fought against rebel groups. But after the Hamas' October 7 attack on Israel and it's continuous pounding of the Gaza strip, Iran has urged Muslim countries to cut off oil exports to Israel.

Israel’s Diverse And Flexible Oil Imports

Israel does not depend on Arab countries for its oil imports, as it has a complex and flexible network of suppliers. According to Kpler, an analytics firm, Israel imported about 220,000 barrels of crude oil per day since mid-May, mostly from two Muslim nations: Kazakhstan and Azerbaijan. Other major sources were West African countries, mainly Gabon. Israel also has other options for oil imports, such as the US, its close ally, and Brazil, which have increased their exports to the global market.

Israel’s Limited Domestic Oil Production

Israel has some domestic oil reserves, but they are not enough to meet its energy needs. It produces a small amount of crude oil, but it still relies on imports for most of its consumption. Israel imports oil from various sources, making it vulnerable to foreign oil disruptions.

Israel’s Challenges In Protecting Its Oil Portts

Israel faces a more urgent challenge that is securing its oil ports and waters from attacks. It has three terminals for crude oil imports, Ashkelon and Haifa on the Mediterranean coast, and Eilat on the Red Sea. Ashkelon is the most important one, handling about 180,000 barrels per day. It is near Gaza and was shut down after the Hamas attack on October 7. Eilat has not received any crude oil since 2020, according to Kpler, while Haifa received about 40,000 barrels per day. Israel gets very little crude oil from Middle East producers, and none from Iran.