Sunday 11/15/2015 0:01
/ Follow-up / Baghdad news
predicted oil analyst continuation of oil prices at current levels until the end of 2015, the recovery starts during the second half of 2016, and saw that the Arab Gulf states may have to draw from the reserve or leveraged over the next three years. He said Kuwaiti oil analyst and head of Horizon Center Management Consultants Dr. Khalid Budi said that "the oil market at the moment is facing difficult times because of several factors, most notably the slowdown in economic growth in China and Europe, adding that economic growth is linked primarily has a significant impact on the oil market." He liked to "slowing economic growth was him and still impact in terms of increasing oil surpluses in the market thereby increasing the supply versus demand, which is growing slower than the growth of supply. "He said that" the lack of Organization of Petroleum Exporting Countries move (OPEC) and taken measures to cut production exacerbated the price drop, where it contributed to the Add pressure on oil prices, the existence of surpluses of more and more ". And the amount of the increase of supply in the oil market, between it" approaching from about 2 million barrels per day, which puts pressure accumulated also contributes to the increase strategic reserves of countries. "He pointed out that" currently the world's production of oil ranges between 94.5 and 95 million barrels per day, of which between 30 to 31 million barrels per day of (OPEC), while the global demand is less than that by about 2 million barrels a day. "He stated that" this conversation is taking place on concerns over oil prices in the short term "asserting that" no concern on oil and oil prices in the long term as the fossil fuels (oil, gas and coal) is still the main source of energy in the world and that the alternative energy and atomic energy sources are not considered a competitor at the moment of fossil fuels, at least during the next 25 years ". He said I would like to" renewable energy and nuclear sources have to contribute less than 18 percent of the energy volume in the world over the next 25 years expected, which means that fossil fuels, especially oil will be the basis and the main source of energy in the world. "He stressed that" growth demand for continuous oil currently This growth is about 1.5 million barrels per year ", stressing that" the increase in demand exist but they are not, according to expectations as hoped and what was previously expected, due to the slowdown in global economic growth. "He predicted body" should not there be a clear increase in the supply markets of oil, which means that there will be a balance and parity between supply and demand in the oil market within two years. "He explained that" the fall in oil prices period affected not recovered, "pointing out that" Oil lived past crises, but in all crises come back and recovering citing the example As happened in 1998 when the price of a barrel of oil was about $ 10 but returned again in the long term and fully recovered in 2007 ". He pointed out that" there will be pressure in the coming period on the budgets of oil producing and oil-exporting and adopted it as the main source of national income, "explaining "The problem in the budgets will remain for a period of between one to three years at most and there is no concern because prices will return to recover." He said I would, "the Arab Gulf states will be affected in the coming years may be forced to draw on reserves or borrowing, but expected that the recovery will be a maximum after 3 years ", adding that" the instability in the Middle East and anxiety contributed to the formation of additional pressure on prices. "He stressed that" speculation is a major factor in the rise in oil prices, but there is fear and psychological factors and negative state of anxiety took control of the speculators have had the effect of the drop in prices at this time as well. "He said he" can not think of falling prices without falling demand for this oil remains and that prices have fallen influenced by abundant supply for a period as the increase in supply does not constitute more than 2 percent, will not continue with the continued increase in demand which does not back down, but may slow the pace of its growth. "He predicted body that" prices recovering in the near future and begin the pace of recovery since the recession usually do not last more than 7 to 8 years, "adding that" the beginning of the recession global economic was in 2008. "and thus pointed out that" the world economic recovery will start soon and as long as oil is linked to economic conditions will return soon to recover This is not the first crisis experienced by oil prices. "
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