2023-06-05 12:35:19
He said that the decision of “OPEC Plus” to extend the voluntary cuts is correct
Tariq Al-Rifai, CEO of the Corum Center for Strategic Studies, said that the decision of “OPEC Plus” to further reduce production and extend the cuts until the end of 2024 is a correct decision.
He added in an interview with Al-Arabiya that the continuous decline in the price of oil over the past year is a symptom of a larger problem, which is the slowdown in the global economy, especially with the economic indicators issued from China recently.
On the possibility of renewing voluntary cuts in Saudi Arabia for one month next July, he said that this will be determined by economic performance and demand numbers from China and India, the two countries that are witnessing faster demand growth than other countries.
“In April, we saw a strong jump in the price of Brent crude within one week, then prices fell to levels lower than they were before the announcement of the voluntary reduction, and he expected a trend similar to what happened in April until a strong change or rise occurs in economic performance in industrialized countries, as well as the emergence of Strong numbers from the United States and Europe,” according to Rifai.
He expected the US Federal Reserve to stop interest rates this month, but there is a question mark regarding whether or not to resume raising them once more, because indicators of growth and inflation in the United States are still unclear.
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