Will OPEC+ make further cuts in 2023?
That’s possible, yet it depends on how the state of the oil markets will continue to develop over the upcoming months. Over the past few weeks, we have seen a sense of stability with Brent trading around $85 despite weak economic data coming from China. Optimism continues to remain, with traders watching for Chinese government incentives, particularly in the manufacturing and real estate sectors. China’s demand this year is expected to account for 70% of the total expected demand growth of 2.2 million bpd, according to the IEA. If Saudi Arabia decides to extend its voluntary cuts through Q4, then that could send another bullish signal to the markets, especially as central banks are expected to continue raising interest rates through 2023.
Discussed these factors with Al Arabiya News Channel Nadine Hani live from London.