Podcast #27: Anas Alhajji – Oil markets

In today's episode, Marcelo López spoke with Anas Alhajji, a partner at Energy Outlook Advisors, as well as an internationally recognised author, speaker, researcher and specialist in the energy markets.

Anas begins by discussing how the issue of the types and quality of oil is important and how that impacts the world trade in this commodity. In this context, he talks about the characteristics of shale oil produced in the USA, the structure and capacity of North American refineries, the country's exports and imports of oil, the future demand for oil products and the impact of natural gas on the market.

Alhajji talks about the sharp drop in the price of oil this year and how the crisis that the sector is going through is unprecedented and the inconveniences and uncertainties that this creates for OPEC. He talks about his expectations regarding the impact of the coronavirus on oil demand and price.

Anas highlights in his analysis the influence that the American presidential election has on oil producing countries and how this is a decisive factor for the price of the commodity in 2020.

Alhajji points out that the years 2021 to 2023 should be very interesting for the sector and predicts a major global energy crisis, to which he attributes different factors, such as, the underestimation of future demand for oil products and the hype of electric vehicles.

Anas also states his point of view on the dynamics involving shale oil from the United States and Canadian tar sands.

When it comes to investment, Alhajji talks about how he prefers to position himself and where he sees more value along the sector's production chain. He also lists the main risks he sees for the sector and what can be done about the crisis he foresees.

Alhajji discusses his point of view on the expectations of oil demand made by many analysts and the exaggerations that these analysts make when estimating the impacts of certain changes.