Baghdad – IA – Nassar Al-Hajj
Today, Monday, the financial advisor to the Prime Minister, Mazhar Muhammad Saleh, identified indicators of rising oil prices in global markets, and while he attributed them to two basic variables, he indicated that if tensions and war continue in the region, a jump in prices is expected.
Saleh told the (INA): “The cycle of oil assets is subject to accelerated upward volatility across current energy market indicators and to two basic variables that affect oil supply and demand in the world: the first of which is OPEC+’s decisions to reduce oil production over the production of the countries of the OPEC group itself and its allies.” With it, OPEC+ has currently implemented major cuts in oil production amounting to 5.86 million barrels per day.”
He added, “These reductions consist of two parts: the first is a reduction of 3.66 million barrels per day extended until the end of 2025, and the other is an additional voluntary reduction of 2.2 million barrels per day that remains in effect until September 2024.”
He pointed out, “The reductions come to remove the current oil glut, which is affected by the decline in growth in the world’s most important energy-consuming economy, which is China,” pointing out, “The second variable is the geopolitical situation and the war that is occurring in the two energy basin regions of the world, which are the Russian-Ukrainian war and the other.” The ongoing war in the Middle East, especially the ongoing war in Gaza and Lebanon with the Zionist entity, and its effects on the oil-producing Gulf region, which dominates more than 50% of global oil exports.
He continued, “If military operations or geopolitical tensions continue in the two regions, oil prices are expected to jump.”