The Reasons behind the drop in oil prices…. And will they reach or even exceed $80?
Mr.Choeib Boutamine
August 6, 2024
In an article published by Attaqa-energy-platform, Mr. Choeib Boutamine, energy expert and CEO of Ranadrill, points out that the recent drop in oil prices is the outcome of the weak performance of the global economy, coinciding with the steady interest rate (in Europe and the United States in particular), in addition to the weak and slow Chinese industrial activity.
He says that the current drop in oil prices is primarily the outcome of the market’s rules instead of geopolitical factors, as the latter usually have a direct impact on the market.
Mr. Choeib Boutamine “There is more supply than demand. Supply chains have not been affected by geopolitical tensions, which maintains good production”.
Regarding the possible impact of the Iran-Israel crisis on the oil market, Mr. Boutamine says “This is not the first time that a crisis has occurred between Iran and Israel, so the retaliation may be the same as last time when Iran attacked some targets inside Israel, and the danger quickly faded. Therefore, the oil market may not be affected by Iran’s retaliation”.
