Fears of the US “debt crisis” cloud the energy market
CMarkits CEO Youssef Al-Shammari said that the recovery of the Chinese economy strengthens the growth in demand for oil, which raises hopes for a continued recovery in the energy markets.
Despite this, Al-Shammari warned, at the same time, of the German economy entering a state of recession, and concerns about the failure of the US debt negotiations, and said that these matters may lead the market to a state of recession.
In response to a question about his expectations for the steps that OPEC + will take in its upcoming meeting, especially in light of the warning of the Saudi Energy Minister, Prince Abdulaziz bin Salman, to speculators in the oil market, and alerting him that the organization can move again, at the same time that he downplayed In which Russian Deputy Prime Minister Alexander Novak is concerned about the possibility of a new move by the organization, Al-Shammari said: The vision now in the energy market is blurry due to the market’s dependence on the “American debt ceiling” negotiations, indicating that if oil prices fell below $ 70 a barrel, then this may It is imperative for “OPEC +” at its next meeting to move to adopt new production cuts.
Al-Shammari explained that the decline in oil prices is not possible if the “US debt crisis” is dealt with in a timely manner, especially since the markets are approaching the summer period in which demand usually rises until the end of July, according to what was stated in an interview on “Al-Arabiya”.
Commenting on Novak’s expectations that the price of a barrel of oil will reach $80 before the end of 2023, Al-Shammari confirmed that expectations of recovery are possible, with strong Chinese demand, especially with the Chinese economy beginning to recover after an almost continuous closure for about 3 years, indicating that this increases the chances of recovery in the markets. energy, and oil prices remain unchanged, at least.
Al-Shammari pointed out that the anticipation of the issue of the “debt ceiling” is what worries the observers the most. However, the issue of stagnation in Germany and expectations of similar cases in Europe and America depends mainly on reaching a solution to the issue of the American debt ceiling, while the general outlook For the Chinese economy indicates an improvement and increase in demand in the energy market.
2023-05-25 16:24:59
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