Al-Shammari: The current prices reflect the concern in the market
Youssef Al-Shammari, CEO of CMarkits London, said that the concerns in the oil markets and the impact on their prices during the last period due to the banking crisis began to fade, but things are still not clear yet.
He added that the banking crisis has not ended yet because it is not clear, especially the policy of the US Federal Reserve, because the regulators solved the problem temporarily by pumping liquidity to troubled banks to avoid the transfer of the crisis to other banks. The US Federal Reserve has improved the image, but the problem has not ended.
He said that the improvement in oil prices during the past two days was due to the interruption of supplies from the Kurdistan Region of Iraq to Turkey.
He pointed out that the banking crisis is not yet resolved and the matter is still unclear, but if there is growth and greater openness in the Chinese economy, this will push the markets to growth.
He expected the resumption of supplies from the “Kurdistan region” of Iraq within weeks after stopping the oil pipelines.
He indicated a slight increase in supplies at the present time, but he expected that demand would exceed supply with the improvement in the growth of the Chinese economy, with the continuation of OPEC cuts, and there are expectations for oil to reach $90 or more per barrel in the third or fourth quarter of 2023.
He explained that the current prices do not reflect the fundamentals, but rather reveal the concern in the market about the banking crisis and the halt in supplies from Iraqi Kurdistan.
