KTFA: Samson: Oil Is At Its Lowest Level Since February 2022
7th August, 2022
Fears of a possible recession dominate energy markets and curb their rise, as oil ended last week at its lowest level since February 2022.
NYMEX crude fell by 8% last week to reach $89 a barrel, between Brent crude contracts fell by 11% to settle at $94.92 per barrel.
Recession fears escalated after the Bank of England warned on Thursday of a prolonged recession after it made its highest rate hike since 1995.
The OPEC + group had agreed at its meeting last week to increase its target production of oil by 100,000 barrels per day in September, but according to OPEC data, this is one of the smallest increases since the introduction of such quotas in 1982.
The organization expressed its concern about the lack of investments in oil exploration, as OPEC Secretary-General Haitham Al-Ghais said in an exclusive interview with CNBC Arabia that the oil market needs investments in production capacity and exploration estimated at about $12 trillion between 2021-2045, stressing that oil investments are no longer to pre-pandemic levels.
Supply concerns are expected to escalate as winter approaches, as European Union sanctions banning Russian seaborne imports of crude and oil products are set to take effect on Dec. 5. LINK
