CEO of CMarkits, Youssef Al-Shammari, said that some may be more optimistic about oil prices in the future, and expect prices to rise, but the rise will not be large.
Al-Shammari added, in an interview with Al-Arabiya, today, Sunday, that many banks expected the oil price to rise to $100 per barrel by the end of 2021, and this did not happen.
Youssef Al-Shammari ruled out that Brent crude prices would reach more than $85 a barrel in 2022, due to many factors that support the state of uncertainty, including the Covid-19 crisis and its parameters, and other parameters may arise, as well as the expected “OPEC +” continuing to pump more oil. Over the next year, which indicates an increase in supplies, as well as the economic recovery that the world is witnessing.
He added that “exceeding the price of $ 90 a barrel is a questionable issue.”
Regarding the rise in oil prices despite the spread of the Omicron Corona virus, Al-Shammari said that there is an increase in the number of cases infected with the new mutation, but there are no measures taken by countries that affect the demand sector, especially on international flights, in the absence of major closures, and while the talk About the enhanced doses raise the level of optimism among investors.
He explained that one of the important factors that support the rise in oil prices is the data of the US Energy Information Agency last week, that the demand for oil products in America reached 23 million barrels.
And the CEO of CMarkits expected an increase in oil supplies from now until next year, and that “OPEC +” would continue to increase production by 400,000 barrels in January, and that there would be a supply surplus of one million barrels or more in the first quarter of 2022, and this could limit Continuous rise in prices.
Al-Shammari suggested that the fundamentals of the market will be balanced in the summer of next year, and thus a kind of balance will occur between supply and demand.
Youssef Al-Shammari pointed out that gas prices rose by a large percentage in Europe, but fell in the United States, and the rise in Europe was related to stopping the Nord Stream 2 gas pipeline from Russia, and therefore Europe must search for energy alternatives that reduce dependence on Russian gas, Including heading to coal.