Hawk Energy: War Could Push Oil Prices to $100

Al Arabiya - Khalid Al-Awadi, energy advisor at Hawk Energy, said oil prices could rise to $100 per barrel if current tensions persist and no agreement is reached to end the war with Iran, or at least to extend the truce.

In an interview with Al Arabiya Business, Al-Awadi added that markets are witnessing a decline in major oil price volatility compared to June and July last year, as fears have subsided and markets have shifted to moving according to supply and demand fundamentals.

He clarified that oil prices have surpassed $90 per barrel and could rise to $95 next week if the truce between the United States and Iran is not extended.

Al-Awadi stated that current conditions do not indicate a near-term easing or price declines, especially given the drop in inventories due to reduced oil supplies.

He added that confidence in the Strait of Hormuz is declining amid the current crisis, and many Gulf Arab countries are looking for alternatives to maintain supplies.

He explained that the decline in U.S. oil inventories has not reached a critical stage, as U.S. laws prohibit withdrawals from strategic reserves at certain levels to preserve these stocks.