Oil expert Fahd Bin Jumaa said factors supporting the future of oil prices include optimism about rising demand from China, as well as the fact that the global economic recession will be smaller than expected.
Jumaa added in an interview with Al Arabiya that U.S. inventories were up 8.5 million barrels from last week and 19 million barrels the previous week.
He pointed out that the data was indicative of a state of uncertainty, explaining that “if supply is high and there is optimism about demand…why are prices rising so sharply?”
He said there is uncertainty in the global market due to the ongoing fallout from the Russo-Ukrainian war, and now the question is whether it will calm down or if its fighting will escalate and cause other problems.
Regarding the fair price of a barrel of oil, bin Jumaa clarified that it is in the range of $75-$85 per barrel and added: “OPEC+ needs to watch and monitor the oil markets because conditions and changes are accelerating and expectations are becoming “ a kind of fantasy” against the backdrop of constant confusion about the fundamental principles of the market.
He stressed the need to increase oil production and production capacity because it will remain the main source in the energy mix for decades to come, noting that the transition to renewable energy requires trillions of dollars and for many decades to come, and investments in oil bring great returns.
