• 3 minutes Will Iron-Air batteries REALLY change things?
  • 7 minutes Natural gas mobility for heavy duty trucks
  • 11 minutes NordStream2
  • 10 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 1 hour U.S. Presidential Elections Status - Electoral Votes
  • 13 hours Evergrande is going Belly Up.
  • 6 hours Is China Rising or Falling? Has it Enraged the World and Lost its Way? How is their Economy Doing?
  • 16 hours Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 3 days Poland Expands LNG Powered Trucking and Fueling Stations
  • 3 days World’s Biggest Battery In California Overheats, Shuts Down
  • 2 days The unexpected loss of output from wind turbines compels UK to turn to an alternative; It's not what you think!
  • 1 day Ten Years of Plunging Solar Prices
  • 1 day Extraction of gasoline from crude oil.
  • 4 days The coming Cyber Attack
  • 4 days Is the Republican Party going to perpetuate lies about the 2020 election and attempt to whitewash what happened on January 6th?
  • 4 days Ozone layer destruction driving global warming
  • 4 days 'Get A Loan,' Commerce Chief Tells Unpaid Federal Workers
Editorial Dept

Editorial Dept

More Info

EGYPT: Political, Economic Uncertainty Fueled by Fuel

Bottom Line: As Egypt’s political uncertainty soars unabated, two major oil supply deals with Iraq and Libya are falling through without the financing guarantees, while energy shortages threaten to lend greater impetus to the prevailing unrest.

Analysis: Egypt is cash-strapped and its only hope of securing agreed-on oil supplies from Iraq and Libya are being dashed as the government fails to come up with the necessary bank guarantees. In March, Libya agreed to give Egypt 1 million barrels of crude a month for up to a year on soft credit terms, while Iraq offered up 4 million barrels of crude per month (at over $100/barrel) with no-interest, deferred payments for three months. However, shortly after agreeing to the deal, Iraq asked for a down payment (about $1.2 billion) or a same-value bank guarantee, which destitute Egypt can’t come up with. The Iraqi government rejected a letter of credit from Egypt Central Bank guaranteeing the $1.2 billion. Libya is likewise looking for a guarantee for liabilities that Egypt hasn’t materialized.

Recommendation: Egypt’s diesel shortage has been fueling continued unrest since last year, and it is having the snowball effect of leading to rising food costs and increasingly frequent blackouts. It will be this in the end that is the undoing of a government that is only hanging on by a threat.




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News