High Uncertainty Keeps Oil Market on Edge
Since the invasion of Ukraine, the oil market has gone into
upheaval with higher prices and risks of shortages. Geopolitics remains the
primary impediment to a balanced market—both in 2022 and 2023—argues Hiba
Itani, Senior Economist at the Gulf Center. Europe faces a possible unprecedented
shortage in oil and gas due to years of overreliance on Russia. China appears
reluctant to absorb the unwanted Russian oil over fear of secondary sanctions.
At the same time, OPEC countries, led by Saudi Arabia, stand firm in the face
of mounting pressure from the US to release more oil to cool prices.
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