[size=36]Expert on falling oil prices: The current situation will not last for long[/size]
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, oil expert Hamza Al-Jawahiri said today, Wednesday, that OPEC's decision to reduce production did not affect Iraq's exports, but rather reduced domestic production, stressing Iraq's commitment to the organization's decisions because they are "fair and aim at stabilizing oil markets."
Al-Jawahiry added, in an interview with the official newspaper, that "compliance with (OPEC) decisions is expected to make price levels range between 83-93 dollars per barrel," adding that "the increase in prices by about 10 dollars or more compensates for the decrease, which amounts to about 220 thousand." Barrels, and profit may increase due to price stability.”
Al-Jawahiry attributed the decline in oil prices to two main reasons, “the first is the complete closure in China of some provinces after the spread of Covid 19 again, in addition to the Russian-Ukrainian war that is putting pressure on prices, not to mention the American pressures and its attempt to compensate for the Russian oil and gas exported to Europe, as well as setting a ceiling My price ranges between 60-65 dollars per barrel, although stocks of oil and derivatives have decreased very significantly in recent weeks.
He noted that "the current situation will not last for a long time, especially with regard to pumping American oil into the markets, which has become very large, and this is what we notice through the difference between the price of Brent and West Texas, which reaches more than 7 dollars per barrel."
And he considered, "This is a large and clear indication that prices have fallen, but they will not continue because the strategic storage of oil and derivatives in America is declining dramatically, and therefore it must be compensated from the markets themselves, from the oil offered in the global markets."
Al-Jawahiri pointed out that "OPEC is coherent and cannot be dismantled, because if things are left without a clear policy, prices will collapse to irreversible levels." Ended 29/N33