Oil ended last week at its lowest level since February 2022, amid fears of a possible recession that would dominate energy markets and curb their rise.
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 following the Bank of England warned on Thursday of a prolonged recession following 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 regarding 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 regarding $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 petroleum products are set to take effect on December 5.
