Energy CEOs are cautious about predicting oil prices

The executive directors of two major energy companies are monitoring the development between Iran and Israel – but they are not about to make solid forecasts for oil prices.

Both sides traded blows over the weekendAfter Israel headed for nuclear and military facilities in Iran on Friday, killing some of its best nuclear scientists and military commanders.

Spoken at the Energy Asia conference in Quala Lumpur on Monday, Lorenzo Simonelli, President and CEO of Baker Hughes, told CNBC “Squawk Box Asia“This” my experience has been, never try to predict what the price of oil will be, because there is one sure thing: you will be mistaken. “

Simonelli said the last 96 hours “have been very liquid” and expressed hope that there would be a de -escalation in the tension in the region.

“As we go forward, we will obviously monitor the situation like everyone else. It moves very quickly and predict the aspect of the next,” he added, saying that the company will take an approach to wait for its projects.

At the same conference, Meg O’Neal, CEO of Australian oil and gas giant Woodside Energy, also told CNBC that the company was monitoring the impact of conflict on markets around the world.

She stressed that the prices are already under “very significant” effects in the light of events from the last four days.

If supplies are affected through the Hormuz Strait, “this would have even more significant effects on prices, as customers around the world would fight to meet their own energy needs,” she added.

As of Sunday, the Strait remained open as per Advisor from the Joint Maritime Information Center CenterS It says: “There is a media story of a potential blockade of (hormuz’s). JMIC has no confirmed information pointing to the blockade or closing, but will follow the situation carefully.”

Iran was According to the messages considering Closing the Strait of Hormuz in response to attacks.

O’Neal said the prices of oil and gas were closely linked to geopolitics, citing examples of events that date from World War II and the oil crisis in the 1970s.

Nevertheless, she would not make a firm prediction of the price of oil, saying: “There are many things we can predict. The price of oil after five years is not something I would try to bet.”

The Hormuz conductor is a vital waterway between Iran and the United Arab Emirates. About 20% of world oil goes through it.

This is the only sea route from the Gulf to the Ocean Open, and the US Energy Information Administration has described This as “the most important oil transit ball in the world.”