Egypt Launches EGYPS 2022 Amid Efforts to Transform Cairo into a Regional Energy Hub

EGYPS Ministerial panel in Cairo (Asharq Al-Awsat)
EGYPS Ministerial panel in Cairo (Asharq Al-Awsat)
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Egypt Launches EGYPS 2022 Amid Efforts to Transform Cairo into a Regional Energy Hub

EGYPS Ministerial panel in Cairo (Asharq Al-Awsat)
EGYPS Ministerial panel in Cairo (Asharq Al-Awsat)

The Egypt Petroleum Show 2022 (EGYPS) kicked off its fifth edition in Cairo with broad international participation, amid rapid steps to transform Egypt into a regional energy hub.

Egyptian gas plays a vital role in securing part of the energy needs of European countries by exporting surplus gas produced from gas fields or imported through the gas liquefaction stations in Idku and Damietta.

It increased Egypt's natural gas exports in light of the rise in global prices.

Egypt's Petroleum Minister Tarek el-Molla announced that the petroleum sector's exports increased 85 percent during the past year to reach about $13 billion.

Molla clarified that the unification of efforts must accompany Egypt's summit hosting.

He asserted that Egypt and African countries are committed to the Paris Agreement and all climate-related agreements, noting that African countries are among the nations that cause the least harmful emissions.

Meanwhile, the International Energy Agency (IEA) CEO, Fatih Birol, announced at the EGYPS 2022 conference that Egypt officially joined the agency as a member.

Birol praised Egypt's remarkable success stories, adding that Egypt, Africa, and the world are at a defining moment in energy and climate.

He affirmed complete support for Egypt in light of its hosting of the COP27 global climate summit and its leadership of Africa to come up with decisions from the conference that suit the continent, which suffers from significant challenges represented in the window for electricity and cooking by primitive means that result in disasters.

President Abdel Fattah El-Sisi attended a ministerial session on energy transformation and efforts to combat climate change in Africa in preparation for COP27 Climate Summit, held next November in Sharm el-Sheikh.

Commissioner for Infrastructure and Energy of the African Union Commission Amani Abo Zeid stressed that considering energy availability for African people is a priority in enhancing access and exploiting energy in manufacturing industries.

Abo Zeid indicated that about 900 million people in Africa use primitive cooking methods, which leaves serious health effects that lead to the death of about 400,000 annually.

She praised the "Decent Life" initiative and its services, noting the importance of unifying efforts and African cooperation.

The official called for benefiting from Egypt's capabilities and expertise, especially in natural gas delivery projects, and converting means of transportation to gas.

She referred to the successful launch of a single African energy market, which began last June and is expected to become the most significant global market for energy exchange by 2040.

For his part, Minister of Minerals and Hydrocarbons of Equatorial Guinea Gabriel Obiang Lima said that the African continent must have its green plans, reiterating that energy sustainability is essential as a priority that precedes the energy transition.

Lima stressed the importance of natural gas and a transitional fuel, similar to the Egyptian experience.

He expressed his aspiration to benefit from Egypt in leading African countries to promote the uses of green energy.



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.