TotalEnergies Expects Boost From Oil Price Surge Despite Production Hits

French energy major says higher prices will offset losses from shutdowns in Middle East conflict

Apr. 16, 2026 at 7:15am

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A high-end, photorealistic studio still-life photograph featuring a polished metal oil barrel, a sleek chrome valve, and a glass beaker filled with a viscous amber liquid, all arranged elegantly on a clean, monochromatic seamless background, conceptually representing the abstract concepts of corporate strategy, finance, and global energy markets.As global energy markets grapple with the fallout from the Middle East conflict, TotalEnergies navigates the complex dynamics of supply, demand, and price volatility.Washington Today

TotalEnergies said it expects a boost to its financial results from higher oil and gas prices, even as the company faces production losses due to the ongoing conflict in the Middle East. The company said it has shut down or is shutting down production in Qatar, Iraq, and the United Arab Emirates, representing around 15% of its total output. However, TotalEnergies expects the impact of higher prices to add $2 billion to $2.5 billion to its working capital for the first quarter.

Why it matters

The update from TotalEnergies underscores the volatility caused by the Iran war to energy markets and the businesses operating in them, as they grapple with complex dynamics caused by the disruption and resulting higher prices for their products. The company's experience highlights the challenges facing the global energy industry as geopolitical tensions continue to impact supply and demand.

The details

TotalEnergies said its first-quarter production of oil and gas is expected to be at the same level as the previous quarter, when it reported output of 2.545 million barrels of oil equivalent a day. However, a chunk of the company's hydrocarbon output is offline due to the U.S. and Israel's war with Iran, which has spread to the wider Persian Gulf. As a result, TotalEnergies has shut down or is shutting down production in Qatar, Iraq and offshore United Arab Emirates, representing around 15% of its total output. The company last week said a refinery complex in Saudi Arabia, a joint venture with the kingdom's national oil company, was closed after being damaged.

  • TotalEnergies reported output of 2.545 million barrels of oil equivalent a day in the previous quarter.
  • TotalEnergies has shut down or is shutting down production in Qatar, Iraq and offshore United Arab Emirates.

The players

TotalEnergies

A French energy major that operates in the oil and gas industry globally.

Patrick Pouyanne

The Chief Executive Officer of TotalEnergies.

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What they’re saying

“If this blockade lasts more than three months, we will start to face some fairly serious supply issues.”

— Patrick Pouyanne, Chief Executive Officer

What’s next

If the war in the Middle East persists, the impact on TotalEnergies's production could become more severe. However, the company said that if negotiations resume and the Strait of Hormuz is quickly reopened, the situation could 'come back to normality' within three months.

The takeaway

The experience of TotalEnergies highlights the complex challenges facing the global energy industry as geopolitical tensions continue to disrupt supply and drive up prices. While the company expects a financial boost from higher prices, the long-term impact of the conflict remains uncertain and could pose serious supply issues if it persists.