The head of the Egyptian Senate's Energy Committee, Osama Kamal, warned of the continued turmoil in the oil markets, stressing that prices will not stabilize before three months have passed since any final agreement.
Kamal, who previously served as Egypt's Minister of Petroleum, said that political agreements in the Middle East cannot be judged as successful simply by announcing them, considering that their stability needs sufficient time to ensure that all parties are committed to implementing their terms. He added that the region is still experiencing a state of uncertainty that directly affects the movement of oil prices.
In televised remarks, he noted that crude oil prices continue to fluctuate between rising and falling depending on developments in the political landscape, explaining that they have now risen to between $85 and $87 per barrel after having fallen to around $70. He pointed out that these levels are still far from the most dangerous scenarios, but they reflect the continued state of anxiety in the markets.
He added that oil prices had exceeded $120 a barrel during the peak of military escalation between the United States and Iran, stressing that the continuation of political crises and the lack of full commitment to international agreements keeps the global energy market in a state of uncertainty, and makes it difficult to predict the direction of prices in the coming period.
The chairman of the Senate Energy Committee explained that the decline in oil prices in recent months has prompted many countries to rely on their strategic reserves of oil and natural gas, with expectations of lower prices following talk of a US-Iranian agreement. However, the return of tensions has led these countries to reconsider their calculations and to move again to purchase new quantities from global markets in anticipation of any future disruptions in supplies.
He stressed that the world is going through a critical phase in the energy sector, noting that continued escalation could lead to an increase in global demand for oil and gas, which will directly affect prices, especially given the uncertainty prevailing in the markets.
Kamal concluded his remarks with a warning that oil prices could rise again to around $100 a barrel within the next 24 hours if no positive developments occur to maintain the truce and prevent renewed escalation between the parties involved.
