An oil expert named Hamza Al-Jawahiri explained on Monday that the decrease in oil prices, despite the reduction in OPEC Plus production and ongoing conflicts in Gaza and Ukraine, is due to political reasons rather than economic ones. He also noted that the situation contradicts what OPEC Plus had anticipated.
Al-Jawahiri stated the recent events. According to him, the Gaza war, the ongoing conflict between Russia and Ukraine, and the decision by OPEC Plus to reduce oil production should result in increased prices due to the basic principles of supply and demand. However, the opposite has occurred.
He stated that political interventions and the pumping of undisclosed quantities of oil caused the decline in oil prices.
Al-Jawahiri highlighted that the Russian President’s visit to Saudi Arabia and the UAE and his meeting with Iranian President Ebrahim Raisi in Moscow within a day were all related.
The global oil markets experienced a continuous decline in prices over the week while the market was closely monitoring OPEC Plus production cuts.
