In this interview given to Mohammad Al Salty and Nour Amache from Asharq Business Bloomberg, Dr Carole Nakhle, CEO of Crystol Energy, discusses the reasons behind OPEC+ surprise voluntary cuts announced in April 2023.
- OPEC+’s voluntary cuts have put upward pressure on oil prices. The cuts can be easily reversed depending on developments in the market.
- Several factors played a role in OPEC+’s decision, but the oil price remains the main reason.
- Historically, OPEC used to chase demand. In the last few years, however, it has been acting more proactively.
- Asian countries, such as China, are diversifying their sources of oil to further enhance their security of supply. However, this doesn’t mean that they will drastically reduce their dependence on Middle Eastern oil. Asia is the main growth centre for oil demand in the future, and the Middle East is the main growth centre for oil supply.
“Oil markets: An early peek into 2023“, Dr Carole Nakhle, Jan 2023
“OPEC+ makes shock million barrel cut“, Dr Carole Nakhle, Apr 2023
“Oil markets react to OPEC+’s latest decision“, Dr Carole Nakhle, Apr 2023