In this interview given to Abdullah Al-Subaie from Asharq Business Bloomberg, Dr Carole Nakhle, CEO of Crystol Energy, discusses why Saudi Arabia increased its Official Selling Price (OSP) of its crude oil grades.
Some of the main points covered during the discussion:
- One can have two interpretations of the move: one is purely commercial whereby Saudi Arabia expects strong demand in Asia. The other one is more strategic to facilitate the reallocation of oil flow thereby helping to easing the pain in Europe while giving a little help to their strategic allies – Russia – in Asia.
- Two major forces are currently driving the oil markets in opposite directions: On one side, the fear of a global economic recession is weighing down on prices. On the other side, the fear of a disruption in Russian oil trade due to sanctions is putting an upward pressure on prices. The next few months will unveil which force will have the upper hand.
Watch the discussion (in Arabic)>
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