Oil industry gathering in Malaysia is shadowed by conflict in Middle East
Energy executives from around the world gathered on Monday in Malaysia's capital for an industry gathering. They were concerned about the dramatic escalation of the conflict between Israel & Iran which has fueled fears that the conflict could spread and disrupt the supply.
According to the head of Saudi Arabia's state oil giant Aramco, conflict highlights the importance of oil.
Amin Nasser, Chief Executive of the UAE, told delegates via videolink that "history has shown us how oil and gas are vital in times of conflict."
He said that the world was concerned about energy security, despite the fact that Israel and Iran were fighting.
Israel launched attacks on Iran on Friday, including its nuclear power plants, in an effort to stop Tehran from developing a nuclear weapon.
Israel launched its first attack against the oil and gas industry in Tehran, which led to a partial shutdown of production, on Iran's South Pars Gas Field on Saturday.
Takayuki UEDA, CEO of Japanese oil and natural gas exploration company Inpex Corp., described the attack as surprising, given South Pars' importance as a major production facility.
He said that the United Arab Emirates operations of the company were going smoothly.
Ueda stated, "If this is really, truly a full-fledged conflict, I believe oil prices will rise to over $100."
The oil prices fell on Monday, after rising in the previous session and surging by 7% on Friday.
OPEC Secretary General Haitham Al Ghais did not answer any questions from a journalist about the conflict or its impact on the oil markets.
Several other executives who attended the event declined to comment as well.
Baker Hughes, a provider of energy services, said that it would continue to operate in the area.
Lorenzo Simonelli, the Chief Executive of the company, said on the sidelines that it was too early to tell what impact the incident could have on the supply. He added that all employees were safe.
He said, "I hope there is a deescalation in tensions." Reporting by Florence Tan in Kuala Lumpur, Sudarshan Varadhan and Danial Azar. Editing by Tony Munroe & Clarence Fernandez
(source: Reuters)
