Jerash: 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.
According to Jordan News Agency, 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.