<2>Why Oil Probably Won’t Go to $150 a Barrel: Three Reasons to Be Skeptical of the Current Panic
<3>The Global Economy is Slowing Down, But Not at a Rate That Would Justify $150 Oil
The current panic over oil prices is largely driven by concerns about the global economy, particularly in China. However, while the Chinese economy is indeed slowing down, it’s not at a rate that would justify a $150 oil price. According to a recent report by < href='https://bloomberg.com' target='_blank'>Bloomberg, China’s economic growth has slowed down to 6.1% in 2023, which is still above the government’s target of 6%. Moreover, the Chinese government has implemented policies to stimulate economic growth, which should help to mitigate the impact of the slowdown on oil demand.
<3>The OPEC+ Cartel is Not as Powerful as It Used to Be
The OPEC+ cartel, which includes major oil-producing countries such as Saudi Arabia and Russia, has been a major driver of oil price increases in the past. However, the cartel’s power has been eroded in recent years due to the rise of shale oil production in the United States and other non-OPEC countries