Some of the points covered during the interview:
- Historically, OPEC spare capacity has been concentrated in three major Gulf producers – Saudi Arabia, the United Arab Emirates and Kuwait.
- Iran and Venezuela can also add incremental barrels to the markets should sanctions on these barrels be lifted.
- The imposition of a price cap by the G7 on Russian oil supplies is unlikely to yield any effect as it excludes major oil consumers such as China and India. If implemented, it would only accelerate the shift in trade flows of Russian oil supplies from Europe to Asia.
- The recent drop in oil prices is not guaranteed to continue as there are many moving parts. However, the biggest risk would be demand destruction should the fears of global economic recession materialise.
“Energy Sanctions and the Global Economy: Mandated vs Unilateral Sanctions“, Christof Rühl, May 2022
“Sanctions and the Economic Consequences of Higher Oil Prices“, Christof Rühl, Apr 2022
“OPEC+ alone can’t fix Joe Biden’s oil problem“, Dr Carole Nakhle, Jul 2022
“Could Iran and Venezuela Help Biden’s Gas Crisis?“, Dr Carole Nakhle, Jun 2022
“OPEC, Oil Prices, and the US: Reasons for, and Solutions to, the Current Crisis“, Dr Carole Nakhle, Jun 2022