Amman, July 25 (Petra) – Oil and energy expert Hashem Akel on
Saturday predicted that global oil prices will surge in the coming
period, driven by ongoing military tensions in the Middle East,
placing more pressure on global energy markets and raising shipping
and insurance costs.

Oil prices are directly linked to geopolitical developments in key
energy-producing regions, particularly the Arabian Gulf, which holds
approximately 20 percent of the world’s oil and gas reserves, Akel,
CEO of Al Mansheyeh Petrol Products Trading Company, told Petra in an
interview.

The military escalation in the region has led to higher oil prices
and increased risk premiums, transport, insurance, and shipping
costs, he said, adding that continued tensions could push prices even
higher.

He said concerns extend beyond oil prices to global supply chains and
threats to maritime routes, namely the Strait of Hormuz and the Bab
el-Mandeb Strait, which raised the cost of shipping oil and raw
materials and prolonged delivery times, despite the availability of
oil supplies in the markets.

Akel said the cost of a barrel of crude oil is just 50 to 55 percent
of the final cost of petroleum products, while the rest goes to
refining, transport, insurance, shipping, and commissions.

//Petra//SS