Why does crude refuse to be disrupted despite the predictions of Al -Wakhla

The increase in the width of the horizon of crude oil will dive with prices as the world moves to alternatives to hydrocarbons and economic growth remains weak. This was the message from almost all price expectations for several months. However, standard oil prices remained significantly stable. Some call it a mystery. However, there is nothing mysterious on this topic. The expectations do not reflect the offer and demand for real life.

“There is a little mystery,” Vikas Duvidi, a global energy strategic expert in Macquari, He said Financial Times this month. “The entire market is looking for huge surpluses, however the price does not avoid. Instead of $ 67 a barrel, why don’t we look at $ 47 a barrel?”

Two possible reasons for not looking at $ 47 a barrel. One of these reasons is the ongoing efforts of the European Union and the United States to make a decision to export energy in Russia through additional sanctions. Since Russia The second is the second The oil producer in the world, immediately before the Kingdom of Saudi Arabia, will affect the disruption of oil flows on the balance of supply and global demand – and analysts know this. And the same applies to the breach. However, they reduce such geopolitical risks in favor of the argument that the electrification and weak economic growth in many major markets undermine the demand for oil. Meanwhile, the supply grows, according to predictions, and this growth growth appears completely separate from the prices – which is not clear.

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The second reason is that the prices are not dropped throughout the road to $ 47 a barrel is China. Millions of words have been spent on media reports that indicate that the demand for oil in China is about to peak, after which it will go down. Meanwhile, China was storing raw, even as demand growth, which is a fact, after more than two decades of jumps and borders. In fact, Clyde Russell Reuters male In a modern column that crude oil imports in China have risen since March this year, even if some crude entered storage instead of refineries. In fact, for every messenger, “from March onwards, China was importing crude at a much higher rate than it needed to meet the requirements of local fuel.”

In turn, he maintained international oil prices stable and higher than many would like to see, including President Donald Trump, who had a cheap gas on his agenda when he took office. On the other hand, Trump believes a firm belief that the revenues of oil export in Russia would accelerate the end of hostilities in Ukraine. However, this would push prices up, and this may be the reason that it has not been pushed to impose additional sanctions on the energy industry in Russia – unlike the European Union, which was facing a higher energy bill where it voluntarily abandoned Russian oil.