Oil Prices Have Fallen to a Half-Year Low

by Olha Povaliaieva
Thursday, August 4, 2022
Oil Prices Have Fallen to a Half-Year Low

The price of oil fell to its lowest level since February 24

As reported by Reuters, on August 4, the value of futures for benchmark reached its highest level since February. The price of the Brent fell to $95.99 (0.8%) per barrel, and WTI to $90.23 (0.4%) per barrel. Obviously, the issue of returning the turbine for Nord Stream 1 is no longer so relevant.

Media resource Trading Economics reports that the increase in interest rates and the slowdown in global economic growth will have a negative impact on oil demand. This, in turn, causes investors' fear and, further, pressure on the market.

The Ministry of energy reports that state oil reserves rose by 4.47 million barrels, gasoline reserves — by 163.000 barrels, and distillate stocks decreased by 2.4 million barrels.

On August 3, at the summit, OPEC + announced a decision to increase oil production quotas by 100 thousand barrels per day in early autumn. The increase is symbolic, but it will have a beneficial effect on the shortage of capacities in oil production and refining.

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