Economy News – Follow-Up
Khaled Al-Awadi, a power consultant at Hawk Energy, anticipates that oil price fluctuations will persist in the near term, ranging slightly above or below fifty cents. He predicts that further volatility will occur at the beginning of next month, coinciding with OPEC+ adjustments to discount rates.
Al-Awadi stated that the primary objective of the current U.S. administration is to reduce oil prices, targeting a benchmark of $65 per barrel or lower. This strategy is underscored by initiatives to stabilize the region, such as efforts to reduce Houthi influence and facilitate peace negotiations between Russia and Ukraine, both aimed at increasing global oil production. Additionally, U.S. tariffs imposed on various countries are expected to contribute to slower economic growth, leading to diminished energy demand and, consequently, lower prices.
He further noted that the latter half of this year may see upward price fluctuations, as oil companies, particularly those involved in U.S. shale production, may face challenges in achieving profitability with prices dipping below $70 per barrel.
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