First Visit by Egyptian Minister to Israel in 5 Years

Egypt’s Minister of Petroleum and Mineral Resources Tarek El Molla meets Israeli PM Netanyahu. (Israeli PM’s office)
Egypt’s Minister of Petroleum and Mineral Resources Tarek El Molla meets Israeli PM Netanyahu. (Israeli PM’s office)
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First Visit by Egyptian Minister to Israel in 5 Years

Egypt’s Minister of Petroleum and Mineral Resources Tarek El Molla meets Israeli PM Netanyahu. (Israeli PM’s office)
Egypt’s Minister of Petroleum and Mineral Resources Tarek El Molla meets Israeli PM Netanyahu. (Israeli PM’s office)

Tel Aviv and Cairo have agreed to expand cooperation in the energy field.

The announcement was made during a visit by Egypt’s Minister of Petroleum and Mineral Resources Tarek El Molla to Israel on Sunday.

The Egyptian minister’s visit marked the first public visit to Israel by a senior Egyptian government official in five years.

“This is an important day, marking our continued cooperation on energy and so many other things,” said Israeli Prime Minister Benjamin Netanyahu upon receiving Molla.

“This began of course with the historic peace treaty between Egypt and Israel but is turning into something that can economically improve people’s lives.”

“We think that this is a great opportunity for regional cooperation among Egypt, Israel and the other countries,” he added.

“We are an energy hub. Together we can supply not only our own needs, but the needs of many other countries. So it is in this spirit of friendship and cooperation and peace and prosperity that I welcome you to Israel,” Netanyahu noted.

The meeting between Netanyahu and Molla was attended by Energy Minister Yuval Steinitz, National Security Adviser Meir Ben-Shabbat, Israel’s envoy to Egypt Amira Oron, Egyptian envoy to Israel Khaled Azmi, and Magdy Galal, chair of the state-owned Egyptian Natural Gas Holding Company, which manages Egyptian state shares in gas projects.

Steinitz welcomed his guest and said he was “happy and excited” to host Molla, the first Egyptian minister to visit Israel since 2016.

Molla’s visit focused on extending a pipeline linking Israel to the Sinai Peninsula in Egypt, in addition to developing gas fields and cooperation in gas exploration, and promoting the Eastern Mediterranean Gas Forum (EMGF).

Egypt, Israel, Greece, Cyprus, Italy, Jordan and the Palestinian Authority established the EMGF as an intergovernmental organization in September 2020. In December, the United Arab Emirates joined the Forum as an observer.

Egypt has been seeking to transform itself into a regional energy hub through the forum, which aims to establish a regional gas market, rationalize the cost of infrastructure and offer competitive prices.

Egypt began importing Israeli gas in early 2020, for possible re-export to Europe or Asia.

The 2015 discovery of the giant offshore Zohr field had unlocked interest in Egypt’s energy market and encouraged Cairo to promote itself as a regional hub.

Molla also signed a memorandum of understanding for Egypt to help develop the Gaza Marine field with the project’s two partners, the Palestine Investment Fund (PIF), the sovereign fund of the Palestinian Authority, and Consolidated Contractors Company.

They agreed to cooperate on developing the field and the necessary infrastructure that would provide Palestine’s needs of natural gas with the possibility of exporting part of it to Egypt.

The MoU was signed by Magdy Galal and advisor to the Palestinian President for Economic Affairs and Chairman of the PIF Board of Directors Mohamed Mustafa.



Oil Prices Steady as Markets Weigh Demand against US Inventories

FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
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Oil Prices Steady as Markets Weigh Demand against US Inventories

FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)

Oil prices were little changed on Thursday as investors weighed firm winter fuel demand expectations against large US fuel inventories and macroeconomic concerns.

Brent crude futures were down 3 cents at $76.13 a barrel by 1003 GMT. US West Texas Intermediate crude futures dipped 10 cents to $73.22.

Both benchmarks fell more than 1% on Wednesday as a stronger dollar and a bigger than expected rise in US fuel stockpiles pressured prices.

"The oil market is still grappling with opposite forces - seasonal demand to support the bulls and macro data that supports a stronger US dollar in the medium term ... that can put a ceiling to prevent the bulls from advancing further," said OANDA senior market analyst Kelvin Wong.

JPMorgan analysts expect oil demand for January to expand by 1.4 million barrels per day (bpd) year on year to 101.4 million bpd, primarily driven by increased use of heating fuels in the Northern Hemisphere.

"Global oil demand is expected to remain strong throughout January, fuelled by colder than normal winter conditions that are boosting heating fuel consumption, as well as an earlier onset of travel activities in China for the Lunar New Year holidays," the analysts said.

The market structure in Brent futures is also indicating that traders are becoming more concerned about supply tightening at the same time demand is increasing.

The premium of the front-month Brent contract over the six-month contract reached its widest since August on Wednesday. A widening of this backwardation, when futures for prompt delivery are higher than for later delivery, typically indicates that supply is declining or demand is increasing.

Nevertheless, official Energy Information Administration (EIA) data showed rising gasoline and distillates stockpiles in the United States last week.

The dollar strengthened further on Thursday, underpinned by rising Treasury yields ahead of US President-elect Donald Trump's entrance into the White House on Jan. 20.

Looking ahead, WTI crude oil is expected to oscillate within a range of $67.55 to $77.95 into February as the market awaits more clarity on Trump's administration policies and fresh fiscal stimulus measures out of China, OANDA's Wong said.