Oil Expected to Keep Rising, FGE's Fesharaki Says

The video discusses the options for adjusting oil production in response to market conditions, including the impact of the Omicron variant and strategic reserves. It analyzes the current tight market situation, predicts future inventory surpluses, and explores potential price changes driven by virus developments and political conflicts. The decision to continue production at 400,000 barrels per day is seen as correct, with the market closely monitoring virus impacts.

What were the two options considered for oil production in response to market conditions?

• Pause production for 1-3 months or increase by 400,000 barrels per day

• Increase production by 1 million barrels or decrease by 500,000 barrels

• Maintain current production levels or cut by 200,000 barrels

• Double the production or halt it completely

What factor was primarily responsible for the recent $10 drop in oil prices?

• A decrease in global demand

• A sudden increase in production

• A virus-related news

• A new government policy

How might the Omicron variant affect the oil market?

• It will result in a surplus of oil

• It could lead to a significant increase in production

• It might cause a decrease in oil prices due to fear

• It will have no impact on the market

What is the expected surplus of oil in the first quarter if production continues?

• 2 million barrels per day

• 500,000 barrels per day

• 800,000 barrels per day

• 1.2 million barrels per day

What could drive oil prices up to $90 according to the discussion?

• A major disaster in Iran nuclear negotiations

• A severe reaction to the virus

• An increase in strategic reserves

• A sudden drop in global demand