TASI Smashes 12,000 points’ Barrier

The Saudi stock exchange index main TASI rose at the beginning of today’s session, Thursday, by 0.4%, index posting as much as 12,005 points.

This is the first time for the index to go beyond 12 thousand barrier, in more than 15 years, specifically since July 2006.

JPMorgan expects oil prices to rise to $125 a barrel this year and $150 a barrel in 2023.

“We see a growing recognition in the market of weak global investment in supply,” the bank said.

Oil prices hit two-month highs on Wednesday, buoyed by a supply shortage, as crude inventories in the United States, the world’s largest consumer, fell to their lowest levels since 2018.

The bank said in a note that assuming production, at the current quotas, the surplus production capacity of OPEC will fall to 4 percent of the total production capacity, by the Q4 in 2022, from 13 percent in the Q3 in 2021.

The weak investment within the OPEC + countries and the increasing demand for oil, after the pandemic, may lead to a potential world-wide energy crisis.