Expert: Oil markets are on the verge of a price jump

Faisal Al-Fayek, OPEC’s energy adviser and director of energy studies, said the oil market cannot bear any imminent supply shortfalls, amid talk about the inability of some OPEC and EU countries. OPEC + alliance to commit to the share of the increased production, which will be a bullish factor for the price.

In an interview with Al-Arabiya, Al-Fayek indicated that OPEC’s latest monthly report showed that the inventories of the Organization for Economic Co-operation and Development (OECD) countries are 120 million barrels above. under the media five years and 306 million barrels in less than last year’s level.

He expected a sharp increase in oil demand, adding that we could reach demand levels for the pre-pandemic period sooner than expected.

He also said that the repercussions of what is happening in the gas markets of huge price hikes will affect the oil markets and the fragile global economy cannot bear such repercussions amid high inflation rates and the price of Brent reaching $ 75. .

Rising gas prices push electricity producers to switch to other energy sources such as oil.

Al-Fayek pointed out that the average price of Brent questyear is $ 67, compared to one media of $ 42 recorded last year, which is a big leap.

He added that oil prices are now forming a resistance barrier at $ 75 and could continue below the $ 80 barrier.

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