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Tensions in Egypt Driving up Oil, Gas Prices: A Look at Domestic Market

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Hira Shahnawaz Akhtar
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One of the prominent risks on the horizon for oil companies is the possibility of closure for the Suez Canal due to the political tensions in Egypt. If such an event were to happen, this would significantly increase the supply costs for Eni SpA (NYSE:E) (BIT:ENI) and Total SA (NYSE:TOT), the major oil suppliers in Europe.

The Suez Canal creates an essential link between the east and the west - oil tankers can move between Asia and Europe and avoid going around the cape of Africa. ‘The waterway shortens the oil supply route to Europe and the U.S. by 6,000 miles, or 10 to 15 transit days. About 3,500 oil tankers pass through the...

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Hira is a financial analyst whose expertise lies in commodity and other financial markets. Hira is currently an independent financial consultant and is working with many international firms like American Arab Solutions (AAS). She has previously served as a Senior Research Analyst at Alternate Research (Pvt.) Ltd. as the Team Leader for the International Equities Research. She has also worked as an equities analyst of Pakistani E&P stocks at Invest Capital Markets. She has experience in business development and conducting feasibility studies in commodity markets, specifically in sugar, palm oil and canola oilseeds. She has cleared all three levels of her CFA (Chartered Financial Analyst) and has an undergraduate degree in Finance.