Israel Base Oil Market Outlook

the global oil market has been subject to a wide range of pressures over recent years, particularly with regards to the increasing demand from many emerging economies such as china and india, as well as falling supply from many of the major oil producers, such as the us, russia and saudi arabia. as a result, the demand for oil has increased, pushing prices up exponentially and creating turbulence within the industry. israel, like many other nations, have been affected by these market changes, with the demand for israel’s oil products increasing significantly, particularly over the past decade. looking ahead to the long-term, the demand for israel’s oil products is expected to remain at elevated levels as economic growth rates in many countries, both in the middle east and beyond, continue to improve. the primary driver of the israel oil market is domestic demand, which accounts for the vast majority of oil consumption, particularly while the country remains relatively isolated from its neighbouring countries. as such, the demand for israel’s oil products is expected to increase steadily over the next decade, as economic growth solidifies and the population continues to grow. on the supply side, the outlook is less certain. as most of israel’s oil production comes from offshore fields, reliance on external exploration and drilling companies is high. supply disruptions due to fluctuations in the price of oil, political tensions, and natural disasters are all factors which have led to supply issues in the past, and these are unlikely to disappear anytime soon. moreover, with the stabilisation of the israeli market, oil production companies are unlikely to invest heavily in exploration and drilling projects, and instead, focus on exploiting existing fields and obtaining maximum returns. with regards to transportation, rail travel is becoming increasingly popular throughout the middle east. high speed rail, which is capable of covering long distances in a relatively short time frame, has the potential to become an important contributor to the transportation of goods both domestically and internationally, and israel is no exception. furthermore, with the predicted increase in the economic development of both palestine and israel, transportation links by rail are likely to become increasingly important, thus providing another source of demand for oil. in summary, the demand for oil in israel is set to remain strong into the future due to strengthened economic development and a growing population. moreover, the introduction of high speed rail links is expected to further drive demand in the region, creating additional sources of demand in the long-term. however, supply issues are likely to persist, and thus, careful monitoring of market conditions will be required in order to mitigate the risk of disruptions.