Global oil markets and OPEC+ plans

In this interview with Cyba Audi from Asharq Business Bloomberg, Dr Carole Nakhle, CEO of Crystol Energy, provides an overview on the state of the global oil markets and OPEC+ plans.

Some of the points covered during the interview:

• For months, OPEC+ in general and Saudi Arabia in particular ignored calls to add more barrels to the markets. However, ahead of the OPEC+ meeting on 2 June, a change in tone was noted with unofficial reports of Saudi Arabia’s willingness to compensate for major losses in Russian oil supplies. Such a change in position indicates a higher OPEC+ output can be expected.
• There is no doubt that Saudi Arabia has the power to compensate for the incremental loss in Russian supplies. But this is not a static market. We should also take into consideration other supply dynamics as well as demand.  
• Since Russia invaded Ukraine oil markets (and other commodity markets) have been in turmoil but the global economy has to date been resilient though the risk of a global recession has increased notably. A slowdown in economic activity will negatively affect oil demand growth.  
• Non-OPEC supply, namely from the US, Brazil, Norway and Guyana, is expected to come to the market this year with additional growth expected next year.