By Bilal Hafeez 17-09-2019

Dr. Anas Alhajji: Oil Market Update (Macro Voices, 27 min listen)


(You can listen to the podcast by clicking here)

In this episode, energy markets expert Dr. Anas Alhajji interprets recent structural changes in the upper echelon of Saudi Arabia that might impact the global oil market. He stressed that the essence of Saudi’s oil policies had not changed much, but that the country is indeed looking to implement a more diversified energy strategy and launch Aramco’s IPO. For this reason, Saudi appointed Prince Abdulaziz bin Salman as the new oil minister. The anchors then moved on to talk about the recent report from OPEC, which indicated the global oil demand for oil was weak and the demand for OPEC oil in particular was declining as well. Finally, they examined how former Trump advisor John Bolton’s dismissal and the re-introduction of Iranian oil into the global market might bring changes to the table.

Why does it matter? This podcast came out before the drone attack on Saudi’s oil production facilities during which they cut production, sending oil prices on a rally. But the drone attack could trigger a radical stress response from the oil market and lead to a spike in crude oil prices. These newly emerged tensions around the Middle East could also raise concerns about the security of global energy supply by throwing an even more unpredictable geopolitical risk into the mix. Finally, despite the anchors’ expectations of stabilization in the energy market for Aramco’s IPO, the current circumstances have certainly complicated the deal and the huge amount of interests involved. Worth listening for a comprehensive overview of the current energy dynamic.

 

(The commentary contained in the above article does not constitute an offer or a solicitation, or a recommendation to implement or liquidate an investment or to carry out any other transaction. It should not be used as a basis for any investment decision or other decision. Any investment decision should be based on appropriate professional advice specific to your needs.)