Experts from Egypt share predictions for oil prices following production cuts

Abu Bakr El-Deeb, a researcher in international relations, political economy and energy expert, has expressed expectations that oil prices will rise to levels above $120 per barrel before the end of the current 2023.

In an exclusive statement to RT, he pointed out that there are several factors controlling the rise in oil prices, in addition to the rise in China’s oil imports to a record level in 2023, increased demand from India, the world’s third largest oil importer, the scarcity of supplies or lack of supplies, and strong demand for oil production. Electricity in the world and the decline in the strength of the dollar in the second half of the year with the success of the Federal Reserve in curbing inflation, albeit modest.

Al-Deeb considered the decision of the OPEC + countries to cut oil production, which will lead to market stabilization, expecting that oil prices will continue to gradually recover, indicating that this issue will be a challenge for the US administration, which fears an increase in prices and the return of the inflation index to growth in America again.

For his part, Egyptian economic analyst Hanan Ramses said that the contract is falling out of the hands of the United States of America after the sudden decision to cut oil production by 9 countries, whether members of OPEC + or non-OPEC members, by one million 660 thousand barrels per day, as OPEC produces more than 40% of oil. The total oil in the world and the countries participating in the reduction are Saudi Arabia 500 thousand barrels per day, Iraq 211 thousand barrels per day, UAE 144 thousand barrels per day, Kuwait 128 thousand barrels. per day, Algeria 48 thousand barrels. per day, Russia 500 thousand barrels. per day.

These countries indicated that this is a precautionary measure aimed at maintaining the stability of the oil market due to the sharp fluctuations that have affected oil prices over the past year, as well as in light of the coronavirus crisis and in light of the Russian-Ukrainian war. and also in light of the unclear vision of the global economy following the recent bank failure in the US.

Ramses added that America called on Saudi Arabia to increase production in order to lower oil prices, but the decision came about the decline, and why America rejects this reduction, because it causes inflation around the world, especially in the US, in which energy prices are considered one one of the most important points of increasing inflation that the United States tried to repeatedly reduce it to its previous levels, pursuing a tight monetary policy and raising interest rates, which led to an aggravation of world crises, high inflation and economic crises in the whole world.

Source: RT