Abu-Ghazaleh: The Fall in Oil Prices is not Due to Supply and Demand Prices will Rise Again through an International Strategy

Abu-Ghazaleh: The Fall in Oil Prices is not Due to Supply and Demand Prices will Rise Again through an International Strategy

DOHA – February 7, 2016 - HE Dr. Talal Abu-Ghazaleh, chairman of Talal Abu-Ghazaleh organization (TAG-Org) predicted that oil prices would sharply rise again during the coming year stressing that that the current fall in oil prices is just temporary, and it happened because of some political factors that will eventually come to an end.

He clarified that oil in specific is a strategic commodity, and unlike commercial commodities, its prices are not subject to supply and demand; therefore, the fall in oil prices we are currently experiencing is due to strategic reasons.

During a press conference titled "Beyond the Decline of Prices" and held in Doha, Dr. Abu-Ghazaleh stated that oil prices decreased by 75% despite the fact that demand for oil did not decrease by a similar percentage. He noted that oil is the only commodity that has not been subject to WTOs agreements.

He clarified that the decrease in oil prices is subject to the will of the states that make decisions, and that the prices will rise again at any time. He added that oil prices have been exaggeratedly decreased, and that was because of major global interests.

Dr. Abu-Ghazaleh noted that countries of the region should adopt knowledge-based economies to avoid the impact of oil prices fluctuation. He cited the example of Finland, the non-oil country that invests in knowledge, the only future source of wealth.

He said that unsold oil stays underground to be sold, maybe in better prices, in the future. He also added that oil is best used as raw material for industry and in medicines rather than as fuel for energy.

He stated that the GCC has benefited from the oil boom, and they launched major infrastructure projects that contribute to the building of solid and strong economy supported by oil wealth, when oil prices increase in the global market.

He also noted that inventions should be invested in to benefit everyone, and establishing knowledge centers and universities that provide virtual education programs is essential. He again cited the example of Finland that produces knowledge and sells it to the world.

Dr. Abu-Ghazaleh alerted that online development is unpredictable in all fields, and with the transition from textbooks to e-books, “we, in the Arab region, should be prepared for a new phase in the field of education.”