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.
Watch the discussion (in Arabic):
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