This is how events in Kazakhstan affect oil prices. It could be a big surprise

The director of the Institute for Natural Resources Governance in Middle East and North Africa, Laurie Haitian, said the picture remains hazy over the course of 2022 regarding the oil market, and therefore the “OPEC +” alliance is engaged in periodic meetings due to the absence of a clear vision.

Laurie Haitian added, in an interview with Al-Arabiya, today, Thursday, that there is a positive expectation that demand will return to what it was before the Corona pandemic and that the global economy will improve, while the concern is now in oversupply.

He explained that the big trend currently is the question of what will happen in the supply and the extent of the ability of the “OPEC +” alliance to engage in production, but at the beginning of questyear the geopolitical situation dominated the supply issue, however via of what is happening in Kazakhstan on the one hand, and what is happening between Russia and Ukraine on the other, as well as the situation in Libya.

And the Director of Governance of Natural Resources continued: “Therefore, the geopolitical situation has become the greatest influence on the markets, in light of the question of the possibility of meeting the needs of market demand”.

He added that; Although the omicron mutation has had no effect on demand and market closures, there is a lot of caution. “

He explained that the problem today is what will happen to supply and where the price of a barrel of oil will go, indicating the demands for a return and increase in US oil production, and that the trend is not only to promote alternative and renewable energy investments. , because the situation is murky on the supply side.

Laurie Haitian said what is happening in Kazakhstan, which is part of the OPEC + agreement, could have a significant impact on the offer and the level of understanding in OPEC +, because everyone is currently considering the possibility of stopping production from Kazakhstan, especially if there is a clash around the fields or a stop due to what happens.

Recent data released by “OPEC +” indicate that Kazakhstan’s production, scheduled for February 2022, is 1.59 million barrels per day.

And Laurie Haitian added that the degree of concern about the production shutdown may be less than how Russia will deal with what is happening. in Kazakhstan and who wants to introduce forces of pace why look at the matter in another way, and not only the increase in fuel, is at the basis of the demonstrations in Kazakhstan, and Russian intervention causes that in Kazakhstan take a stand by the Americans and Europeans.

He explained that all of this raises a question about the impact of this when it occurs on the OPEC + agreement, especially since the alliance is successful thanks to the Russo-Saudi agreement, and therefore it is important to look at what is happening geopolitically to know about it. the repercussions on prices in future, adding that oil prices tend to rise in the fourth quarter, the first of 2022.

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