Dr Carole Nakhle, CEO of Crystol Energy, is quoted in this article written by Stephanie Bechara from L’Orient le Jour where she explains the reasons behind the recent stability in oil prices despite rising geopolitical tensions in the Middle East, how the current circumstances differ from the 1973 oil crisis, and what conditions might cause a significant increase in oil prices today.
Evolution of global oil markets
Source: Energy Institute
According to Dr. Nakhle, oil prices have remained stable despite rising geopolitical tensions in the Middle East, due to diversified global oil supplies, slower growth in demand, and the use of strategic reserves. Unlike in 1973, OPEC’s influence has waned, and oil’s share in the global energy mix has decreased significantly, changing the dynamics of the oil market.
She added that a major and sustained disruption in oil supply would be a precursor to a spike in oil prices, which is still not the case today.
Related Analysis
“Oil markets: Relative stability amid geopolitical strife“, Dr Carole Nakhle, Feb 2024
Related Comments
“Reasons for the decline in oil prices“, Dr Carole Nakhle, Aug 2024
“Growth outside OPEC+ robust“, Dr Carole Nakhle, Jul 2024
