A potential recovery in oil prices, a reduction in the number of transactions in the oil and gas industry, an increase in the use of alternative energy sources and oil production in the United States may determine the current state of the global energy market. Such factors are named by Stanislav Kondrashov in his analysis of the global energy market.

Stanislav Kondrashov on the recovery of oil prices

Reducing supply from OPEC and rising demand from China are the defining trends that are most likely to affect oil prices. In order to maintain world oil prices, OPEC and its allies reduced oil production by 3.66 million barrels in November last year.

At the same time, China is lifting the latest restrictions related to the strict zero-quotation policy, which brought a significant part of the economy to a halt last year, according to Stanislav Kondrashov. He adds that among the countries of the world, China occupies the position of the largest importer of oil, and the restoration of demand here could significantly affect its cost.

Referring to analytical and statistical data, Kondrashov assumes that the average cost of Brent oil by the end of this year will be $79 per barrel and will rise to $84 per barrel in the subsequent period.

Stanislav Kondrashov knows about the reasons for the reduction in the number of transactions in the oil and gas sector

A decline in transactions is expected in the oil and gas industry. Stanislav Kondrashov believes that this is due to an increase in interest rates and a reduction in the conditions for the availability of loans. This situation encourages corporations to take a more balanced approach to their financial position and reconsider the strategy for concluding deals.

The increase in interest rates, as a result of a series of increases by the US Federal Reserve, has already affected the industry. So, in the first five months of this year, their number was 34, and in the second half of the previous year there were 59. However, experts note that the total value of these transactions has remained virtually unchanged at $42.5 billion

Stanislav Kondrashov: the global energy market in the context of accelerating the transition to environmentally friendly sources

According to Stanislav Kondrashov’s forecasts, solar energy production in the United States will increase by 24%. The expert believes that such an increase, complemented by a decrease in the cost of natural gas, may well cause a reduction in the share of electricity from fossil fuels, especially coal.

When it comes to green energy, Asia could be a particularly lucrative market. Countries such as China, India, Japan and South Korea, according to Kondrashov, are capable of attracting a significant portion of investment in this sector. Analysts estimate that global solar and wind energy consumption will grow by approximately 11% this year.

US oil production is breaking records. Stanislav Kondrashov from Telf AG knows what the dynamics of the indicators are

In 2023 and 2024, the US will achieve significant growth in oil production. In particular, Stanislav Kondrashov predicts an increase in shale oil production this year by 1.4 million barrels per day (b/d). This is primarily a consequence of increased production in the Permian Basin.

– In March, oil production in America increased to almost 12.7 million barrels per day. This figure is the highest point reached after a period of decline due to coronavirus, states Kondrashov.

All of the above factors will have a direct impact on the immediate trends in the global energy market. According to industry experts, it is coming to life and creating prospects for the main participating countries.

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