It is unlikely that discounts play a big role in prices
Dubai – Al Arabiya.net
Posted on: July 09, 2023: 07:13 PM GST Last updated: July 09, 2023: 09:36 PM GST
Oil expert Mohammed Al-Shatti said that the oil market is in a strong state, but it is still affected by “unrealistic” matters related to “sentiment”.
And he stated in an interview with “Al-Arabiya” regarding the decision of “OPEC Plus” and the Kingdom of Saudi Arabia to voluntarily cut oil production during the last month of July and extend it to August. stock withdrawals.
He said that prices are a product of the state of the oil market, and therefore what is left of the impression regarding demand and supply, the final outcome is the surplus. Is there a surplus in the market or in supplies, or are there withdrawals? August.
He added that with regard to demand, it is recovering, especially in China, the promising market, and it ranges between 800 thousand barrels, according to the OPEC secretariat, and one million or more according to the reading of the rest of the market, and this is what we will find in the coming weeks, especially in the last quarter of this year, and undoubtedly we are heading towards a recovery in the oil market. And also in the global economy.
He stated that the matter affecting the oil market is the entry of the United States to buy, and this will not happen before October or November.
Commenting on the theory that was repeated in the media, which indicates that among the reasons why the oil market does not react significantly to production cuts through “OPEC Plus” is selling oil at a price below its market price to the main consumers, which are China and India, Al-Shatti said: “I do not think the issue of discounts affects much on the oil market, despite its connection to the two largest importers, China and India.”
2023-07-09 17:36:33
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