Ministers fear a return to $100
One worker working in the oil field that Almetyevneft (an oil and gaz production board) created.
TASS | TASS | Getty Images
On Monday, energy ministers from Egypt and Cyprus expressed concern about oil prices rising above $100 per barrel.
The announcement comes at a moment when over a dozen other countries urge their citizens leave Ukraine amid warnings of an imminent Russian invasion.
International benchmark BrentCrude futures rose to an all-time high of $93.86, a seven-year record, Monday morning due to geopolitical tensions. The contract last traded at $93.86, 0.6% lower than the previous peak of $96.16.
U.S. West Texas Intermediate futures, meanwhile, stood at $92.59, roughly 0.5% lower.
Europe and the U.S. threatened sanctions against Russia for invading Ukraine. The threat escalates fears that Russia could disrupt supply chains from one world’s largest producers. Russia denies that it intends to invade Ukraine. It has amassed around 100,000 soldiers at Ukraine’s borders.
An Egyptian conference on oil and gas was held in Cairo. The petroleum and energy ministers of Egypt, Israel, Cyprus, and the United Arab Emirates were questioned if they anticipated oil prices rising into the triple-digits.
CNBC’s Hadley Gamble interviewed Tarek Elmolla, Egypt’s Petroleum Minister. He said that he could see the event happening as a professional, but didn’t want it.
“It is definitely on the way,” he said.
Tarek El Molla, Egypt’s Oil Minister, spoke at the CERAWeek 2019 by IHS Markit conference, Houston, Texas on Wednesday, 13 March 2019.
F. Carter Smith | Bloomberg | Getty Images
Natasa Pillides, Cyprus Energy Minister, said it was “a frightening concept” for oil prices to exceed $100 a barrel. She said, “It’s actually very tangible.”
Pilides explained that the problem is difficult because of the fact that we have a tendency to subsidize basically in recent months. This is not the norm.
While we must adhere to the targets for energy transition, I believe natural gas can play a role as a bridge fuel in this trajectory.
Karine Elharrar from Israel, the energy minister said at the same event that “It was a very difficult question. But I think if it’s not at we won’t be at.” [$100 oil]Then, we need to ensure that there are many energy options available.
International Energy Agency previously recognizedAlthough natural gas has been referred to as “the cleanest and fastest growing fossil fuel,” it is not yet clear if its future use in the transition towards net-zero energy systems.
It is clear that the main driver of climate change is caused by fossil fuels such as oil, coal and gas.
Suhail al-Mazrouei from the UAE was asked by CNBC’s Hadley Gamble if oil prices might exceed $100/barrel.
“I believe what’s driving the market right now is a geopolitical tension. That is the main driver of the price. “It is extremely difficult to forecast when it comes to Geopolitics,” he stated, referring specifically to the Russia-Ukraine crises.
OPEC+ is an alliance of oil producers. They have not been able to increase production since the beginning of this year. despite pledging to gradually unwind record supply cuts. The UAE is a member country of OPEC.
Al-Mazrouei answered the question “I don’t believe we need to escalate beyond what has been said.” We hear that there’s no intent to invade and this, I believe, is comforting.
“I would have been on the camp that isn’t seeing that happen,” he stated, adding that he hoped that diplomacy would prevail between Russia and Europe.