Nayef Al-Dandani, an expert in energy strategies, said that the energy markets are facing moral pressures represented in the expectations that large quantities of Iranian oil will enter through the entry of the nuclear agreement to the final stages, without considering the threats of economic stagnation and high inflation rates globally.
Nayef Al-Dandani added in an interview with Al-Arabiya, today, Friday, that What is happening in the oil markets? It is not related to the fundamentals of the markets represented in the existence of a gap between supply and demand, the shrinking of the production surplus and the suffering of the producing countries, and this is not reflected in the market and oil prices in the recent period.
The expert in energy strategies stressed that there is a real disconnect between the physical market and the fundamentals of the markets.
Al-Dandani explained that there were rumors of commitments from Iran to Europe and America in the negotiations that they have stocks of more than 100 million barrels ready to enter the markets, while Iranian oil is in the markets even if it is not declared and is exported to some destinations in Asia and Venezuela.
He said that Iran’s production is at 2.5 million barrels per day, while in the last 12 years, Iran has not been able to raise production to above 3.8 million barrels per day, and during a whole year it was able to rise by regarding 900,000 barrels only, and therefore there is an exaggeration in the numbers regarding Iranian oil.
Nayef Al-Dandani added that Iran’s share in the event of an agreement with it will be within the “OPEC +” alliance, and the alliance will calibrate it and restructure the market shares of the members in line with the market share established for Iran, and therefore there will be control of the markets even if Iran’s oil enters, and therefore the current reaction in the markets is not identical to reality.
Nayef Al-Dandani indicated that accelerating the negotiations of the nuclear agreement takes into account the Russian oil embargo by the end of the year to get rid of European imports of Russian oil, and that Iran may be the most appropriate alternative, but there has not yet been an agreement to set a ceiling for Russian oil prices, and in the event of the embargo, Russian oil will be found. Its markets, and Russian and Iranian production will be within the “OPEC +” alliance.
