SOCAR Trading: Tension can be observed in global oil market due to conflicts in world

Geopolitical risks strongly influence global oil prices and supplies, Acting Chief Trading Officer at SOCAR Trading (the trading house of the State Oil Company of Azerbaijan), Taghi Taghi-Zada said.

He made the remark on the sidelines of a meeting of global trading companies (Commodities Global Summit 2024) in Lausanne.

"The oil market is expected to remain tense in the short term due to world conflicts, geopolitical pressure, and logistical disruptions. There are many uncertainties (regarding crude oil)," noted Taghi-Zada.

However, he acknowledged that OPEC "has been doing a good job managing oil prices in recent years".

"OPEC may be interested in acting to maintain the global oil price at an average of $90 per barrel. They have been successful, and I see no reason why they should not continue this trend as a group," Taghi-Zada explained.

Overall, most global traders believe that this year the price of oil could be in the range of $85–100 per barrel.

To note, the Commodities Global Summit was held on April 8–10, organized by the Financial Times.

Headquartered in Geneva, SOCAR Trading was incorporated in December 2007 as the marketing arm of SOCAR with a mandate to market Azeri barrels produced from the Azeri-Chirag-Gunashli field and other surrounding fields in Azerbaijan.