“Mina Tadrus, CEO of Tadrus Capital, is skeptical about the direction of the oil market in 2023, too, with many factors coming to play.
On one side, he sees higher demand for oil as the global economy recovers from the pandemic pushing oil prices higher. “Many countries are starting to ease lockdown restrictions and ramp up their economic activity, which could lead to an increase in demand for oil to fuel transportation and industrial production,” he told IBT. “The International Energy Agency (IEA) expects global oil demand to increase by 5.4 million barrels per day in 2023, which could boost prices.”
On the other side, Tadrus identifies several factors that could be putting downward pressure on oil prices, like the continued growth of renewable energy sources, such as solar and wind power. “These sources are becoming increasingly competitive with fossil fuels, and their growing adoption could reduce the demand for oil in the long term,” he said. “The IEA expects renewable energy to account for almost 30% of global power generation by 2023, up from 25% in 2021.”
Source: International Business Times
Author: Panos Mourdoukoutas Ph.D.
Continue reading here: https://www.ibtimes.com/oil-prices-2023-boom-bust-3653207