Energy consultant and former OPEC director of energy studies Dr. Faisal Al-Fayek said the year 2022 was an exciting one, especially as prices in the first half were above $100, but he closed the year with an average of $100 for Brent crude and $97 for West Texas crude.
Al-Fayek added in an interview with Al-Arabiya channel: “Brent was at $85 at the end of the year, and it is considered low, and the severe lack of liquidity in the derivatives markets is clear with the increase in dollar prices and the inverse relationship between the price of oil and the price of the dollar”.
At the end of last week’s reports; pink Oil prices Nearly $3 to settle in Friday’s session, edging gains for the second straight week, after Moscow said it could cut crude output in response to the Group of Seven price cap on Russian crude. Brent crude oil climbed $2.94, or 3.6%, to $83.92 a barrel. US West Texas Intermediate crude oil rose $2.07, or 2.7%, to $79.56 a barrel.
He explained that continued uncertainty is hampering the activities of traders and speculators in the oil futures markets and said, “OPEC Plus producers are expected to deepen production cuts to maintain market cohesion, while it has become clear that the Fed is planning more monetary tightening”.
He pointed out that oil prices got off to a bad start in 2023 and are starting with unwarranted downward momentum for the first time in nearly 30 years, and said, “Why do we need upward momentum in prices to continue invest in the source, and supplies are continuing now, but I can’t know how the markets will fare.” No oil supply shock.”
He stressed that despite the latest data on total oil inventories for OECD consumers in October 2022 at 167 million barrels less than the five-year average and 197 million barrels less than the 2015-2019 average, the oil prices continue to move at unimaginably low levels. Expected even as US gasoline and oil inventories are at their lowest level in 5 years and US strategic storage levels are currently at 372 million barrels compared to 595 million barrels a year ago, which is the lowest level low since 1984, which raises concerns about energy security.
Al-Fayek confirmed that Brent crude has ranged between $76 and $86 in flat swings, and speculators have found no bets on oil for the past two months, and it is now priced unfairly to derivatives prices.
