Oil expert Fahd bin Jumaa said that the demand for oil increases whenever the inflation rate in the US decreases. That raised crude oil prices.
In an interview with Al-Arabiya, Jumaa indicated that another reason for the rise in oil prices was the increase in US oil inventories last week by 3.9 million barrels per day.
He stressed that after OPEC+’s decision to cut production by two million barrels per day, oil prices have stabilized at around $95, which is a reasonable and good price for investors and consumers.
Juma forecast that demand for heating fuel would increase in the winter season, pointing to an ongoing geopolitical crisis and the imposition of a cap on Russian oil and gas to support rising oil prices.
The oil expert said that the price of $100 a barrel is a good level in light of the lack of supplies and maintains the level of demand.
He believes that the easing of “Covid” restrictions in China will be reflected in the improvement in oil demand, on the other hand the rising US dollar is putting pressure on prices.
