Energy ministers from Egypt and Cyprus said Monday they were “deeply concerned” that oil prices could rise above $ 100 a barrel.
These fears come at a time when more than a dozen countries have called on their citizens to leave Ukraine amid warnings of an impending Russian invasion.
Brent crude futures jumped to a new seven-year high on Monday morning amid rising geopolitical tensions. The contract was last seen trading at $ 94.33, down 0.1% for the session, having earlier reached the $ 96.16 high.
West Texas Intermediate futures, meanwhile, traded at $ 93.20, up about 0.1%.
The United States and Europe have threatened to impose sanctions on Russia if it invades Ukraine, escalating fears of a possible supply cut by one of the world’s top producers. Russia has repeatedly denied plans to invade Ukraine.
Speaking at an oil and gas exhibition conference in Cairo, Energy and Petroleum ministers representing Egypt, Cyprus, Israel and the United Arab Emirates were asked if they expected oil prices to jump to three digits.
“For me, as a professional, I can see it happening, but I do not want it to happen,” Egyptian Oil Minister Tarek El Mola told CNBC’s Hadley Gamble on EGYPS 2022.
“It’s on its way, for sure,” he added.
Cypriot Energy Minister Natasa Pilidou agreed that it was “a very scary idea” to imagine that oil prices would exceed $ 100 a barrel. “It’s actually quite tangible,” he added.
“It is very difficult to deal with it,” Pilidou said.
“We must definitely stick to our goals in terms of the energy transition, but I would also add that gas has a place on this trajectory as a bridge fuel.”
Speaking to the same panel, Israeli Energy Minister Karin Elharar said: “It is a very difficult question, but I think if we do not want to be at $ 100 for oil then we have to make sure we have a variety of energy sources.”
Certainly, the burning of fossil fuels, such as coal, oil and gas, is a major factor in the climate emergency.
OPEC chief is “reasonably optimistic” that stability in Ukraine will be restored
OPEC Secretary-General Mohammad Barkido said on Monday that he was “reasonably optimistic” that world leaders involved in the Russia-West confrontation over Ukraine would be able to restore peace and stability.
Geopolitics and massive underinvestment are driving the oil market, Barkindo said on the sidelines of the industry event in Cairo, adding that people need every barrel they can get right now.
Source: Capital
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