Oil analysts: “OPEC +” has absorbed the state of tension in...

Crude oil prices started the week’s trading on a new rise, after Saudi Arabia raised the selling prices of its crude in the Asian markets and in the United States, in an indication of confidence in the recovery of global demand for crude oil, especially in the short term.
The rise in crude oil prices is supported by the faltering of international negotiations with Tehran, which rules out the return of Iranian crude oil exports to the market soon, in addition to the factors supporting prices with a relative decline in fears of the effects of the “Omicron” variable from the Corona virus.
And oil analysts said in their interview with Al-Eqtisadiah, “The decision of “OPEC +” absorbed the state of tension in the market and made it take a break from the previous panicked sales,” noting that “OPEC +” is ready to deal with all scenarios as it monitors and receives more data. And constantly information about the development of the situation in the crisis variable “Omicron”.
They said that demand in Asia such as China and Japan slowed after an earlier rise due to the winter season, while government restrictions on Chinese private refineries and the issuance of planned crude oil reserves add to the weaker sentiment in the oil market.
Robert Stehrer, director of the Vienna International Institute for Economic Studies, said, “Fears of “Omicron” are receding relatively and increasing hopes that demand will recover,” noting that the uncertainty surrounding oil continues to affect the oil market and raises many questions about a possible destruction of demand in the coming weeks. coming.”
He stated that Asian demand is still strong, which made Saudi Arabia raise selling prices, pointing to international reports indicating that Indian demand is still the only bright spot in Asia, pointing to Saudi Arabia’s strong conviction that demand will remain coherent despite the Corona virus crisis.
For his part, Rudolf Huber, a researcher in energy affairs and director of a specialized website, confirmed that the “OPEC +” alliance broadcast a positive mood in the market because of its lack of concern about “Omicron” and its adherence to adding the monthly production increase by about 400 thousand barrels per day for January (January), with the participation of 23 Crude oil producing country.
He indicated that the “OPEC +” alliance expected that the oil market would turn from a supply deficit to a surplus in early 2022, stressing his confidence that the monthly increase would not prevent efforts to restore balance and stability in the oil market, especially after Brent crude fell 15 percent since late November. (November) to just under $70 a barrel, reducing oil price gains this year to 35 percent.
For his part, Matthew Johnson, an analyst at the international consulting company “Occera”, said, “Crude oil prices have returned to rise due to optimism for the consolidation of demand, after a series of sharp losses that occurred due to the discovery of the “Omicron” variable and the possibility of more barrels arriving in the market from “OPEC.” + “And major importers like the United States want to reduce domestic fuel costs.” He stated that the market sentiment is correcting its course towards the positive trend, especially after the statement of Engineer Amin Nasser, CEO of Aramco, that he is “very optimistic about demand”, and that the market may have been exaggerating its reaction to the news of the “Omicron” variable.
In turn, Naila Hengstler, Director of the Middle East Department at the Austrian Federal Chamber, explained that crude oil prices received a positive push towards returning to the pace of gains with the announcement of Aramco’s official selling prices, which is considered as a leadership and engine component for the oil markets and often leads the pricing trend in the region, pointing to “OPEC”, led by Saudi Arabia, has maintained a positive demand outlook, despite the impact of the counter factors related to the epidemic situation.
She confirmed that oil jumped after the “OPEC +” alliance left the door open to reverse its decision to increase production according to market developments, and with the impact of the “Omicron” variable from the Corona virus on demand remaining largely uncertain, indicating that the market situation is still volatile and there is difficulty in assessing Short-term supply and demand balance due to the new strain and the release of strategic crude oil reserves led by the United States and in several major economies of the world.
In terms of prices, oil rose more than a dollar a barrel yesterday after Saudi Arabia, the world’s largest oil exporter, raised the prices of its crude sold to Asia and the United States, and with the indirect talks between the United States and Iran on reviving the nuclear deal seemingly deadlocked.
According to “Reuters”, Brent crude futures for February delivery rose $1.39, or 2 percent, to $71.27 a barrel during trading yesterday.
US West Texas Intermediate crude futures rose $1.40, or 2.1 percent, to $67.66 a barrel.
Yesterday, Saudi Arabia raised the official selling price of Arab Light crude to Asia and the United States in January by 80 cents compared to the previous month.
On the other hand, the “OPEC” crude basket rose and recorded $71.61 a barrel on Friday, compared to $70.03 a barrel the previous day.
The daily report of the Organization of Petroleum Exporting Countries “OPEC” stated yesterday that the price of the basket, which includes average prices of 13 crudes from the production of member countries of the organization, achieved the first rise after a previous decline, and that the basket lost about ten dollars compared to the same day last week, in which it was recorded. $81.31 a barrel.