CMarkits London CEO Dr Yousef Al-Shammari said fears of economic stagnation and monetary tightening still dominate oil markets despite policy easing zero-Covid in China.
Al-Shammari added, in an interview with Al-Arabiya, today, Monday, that the markets are going through strong fluctuations while the day in which are heading towards $ 100 a barrel, the next day they will drop to $ 90 a barrel, and so the scene is not clear and there are several factors affecting the bulls and bears markets.
The managing director of CMarkits London explained that the unclear prospects bring in a critical position the “OPEC +” mission during its next meeting, the beginning of December 2022, and in the light of the easing of measures in China, of the return of activities and the growth of the economy, prices will move towards 100 dollars a barrel, which could stimulate “OPEC”. + “to increase production.
Youssef Al-Shammari said that the issue of increasing production is unclear and there are several scenarios, as the next “OPEC +” meeting could decide to reduce production by 500,000 barrels or keep its policy unchanged.
Al-Shammari added that there is a tendency to review the baselines at the next meeting and, according to Energy Intelligence, Iraq wants to review the baseline and therefore be in able to increase its production, which could be reflected in some way in the price drop below $ 90 a barrel and other countries may require a revision of the baseline.
The CEO of CMarkits London explained that the issue of the recession in America is currently less likely than expected in mid-2022, and if the housing crisis in If China continues, it could affect in some way on the Chinese economy and its continued slowdown, and then the markets await the numbers issued by China to clarify what will be The photo is from 2023.
Youssef Al-Shammari indicated expectations of an increase in US production by the Energy Information Agency, as production currently exceeds 12 million barrels per day, which markets account for, with US President Joe Biden which warns companies to pay more taxes in case of several production increases.
Al-Shammari said the economic numbers are ambiguous and slow, and therefore “OPEC +” could postpone the increase in production, and this is the likely scenario.
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