Have oil prices reached their peak?

The CEO of the Corum Center for Strategic Studies, Tariq Al-Rifai said in an interview with Al-Arabiya, today, Wednesday, that oil still presents problems and imbalances between supply and demand, many of which are due to American production, in in particular, the production of shale oil, which amounts to about 13 million barrels per day in 2019-2020, and it is currently difficult to return to over 11 million barrels per day.

Al-Rifai added that by stopping production due to the Corona pandemic, it is difficult for US shale oil production to return to pre-pandemic levels because it needs large investments, which leads to an imbalance in supply, demand and the sustainability of high oil prices.

He pointed out that petroleum derivatives and petrochemicals have very strong demand, especially from industrialized countries during the current recovery period.

In recent days, US oil has risen to its highest level since 2014, as the energy crisis coincided with a recovery in demand from economies. in recovery from the epidemic. Events indicate that Russia will not do its best to provide additional natural gas to Europe to alleviate the current crisis, unless it gets regulatory approval to start shipments through the controversial Nord Stream 2 pipeline.

As for the rise of the currency bitcoin, Tariq Al-Rifai said that with China about a month ago that it banned the trade of bitcoin and the conversion of the owners of bitcoin outside China, while currency mining was mainly carried out in China in previous years has now moved out of China, which affected the price of the currency, and has returned to rise as the investor today is looking to invest in cryptocurrencies as an alternative to money markets, and with the approval of the United States, to trade futures contracts in Bitcoin, the currency has increased dramatically.

Al-Rifai added that while other currencies are unrelated to Bitcoin, many expect other currencies such as Ethereum to rise. in following.

The bitcoin has reached the maximum in six months and is close to all-time highs on Tuesday as traders bet an expected listing of a US futures-based equity fund could generate investment flows in bitcoin and cryptocurrencies. Bitcoin consolidated its earnings, surpassing $ 63,000, the highest level since last April.

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