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00:00 It seems that oil prices are on the way to monthly gains for the second month in the year 2024.
00:08 And keeping the $80 per barrel levels for Khambrind remains a target for OPEC+ countries.
00:15 Why? Because S&P expects that OPEC+ will increase its voluntary reduction to production
00:22 during the second quarter of this year by 2.2 million barrels per day. This was previously announced
00:30 only to support prices during the past period with the sharp decline in prices.
00:37 And perhaps during the current period there is also a slowdown in demand from China.
00:41 There is a slowdown in demand in general, according to the expectations of international agencies,
00:46 whether OPEC or even the International Energy Agency, and that demand did not rise as expected.
00:51 Therefore, OPEC+ countries are heading to reduction in production.
00:57 We have seen separate voluntary reductions, whether from Saudi Arabia individually or also from Russia.
01:04 It seems that these reductions, based on what we have seen, may be completed.
01:09 The reasons for the expectations of reduction in production remain at the same prices above $80,
01:15 because most of the Gulf countries' budgets achieve good benefits, or OPEC+ countries in general,
01:21 achieve good benefits from the $80 levels and more.
01:25 And you do not want to lose these budgets and benefits.
01:30 Also, the production of American oil has increased to a reasonable level,
01:33 because American oil, as it is, has been directed during the past period to increase production in the United States,
01:40 and therefore to rely on American oil, which makes the supply in the market large,
01:46 and therefore affects prices.
01:48 Therefore, OPEC wants to maintain the levels.
01:52 The Middle East is protecting its market share with the preference of India and China for Russian oil,
01:57 given what they are getting from the Russian oil, because Russia is subject to sanctions,
02:03 and therefore, the security of Russian oil makes the countries face the S&P.
02:10 India says that India is away from the Middle East oil for the benefit of other Asian countries.
02:14 South Korea gets 99% of its oil from the United Arab Emirates and 1% from Saudi Arabia.
02:21 And Japan is the fourth largest oil importer in Asia, depending on the Gulf countries, by 90%.
02:27 In terms of prices and performance improvements for Brent oil, there are 8% earnings since the beginning of this year,
02:33 only 2% this month.
02:35 And American coal, also 3.5% since the beginning of February,
02:40 and prices or oil is heading to achieve earnings for the second month on the trend.
02:47 So, according to S&P's expectations, oil will be in the near future,
02:51 or OPEC+ will be the way to extend the voluntary reduction for production for the second quarter of 2024.