Oil prices recorded 112.89 dollars for Brent and 109.58 dollars for US crude
Today, oil prices recorded $112.89 per barrel for the global benchmark crude futures contract, and US West Texas Intermediate crude futures recorded $109.58 per barrel.
Economists said Europe is increasingly at risk of recession due to rising oil and gas prices, amid fears that Russia will cut supplies entirely.
Nomura Bank, a Japanese investment bank with large operations in London, stated that the European economy will be affected by a variety of factors, including: lower demand in the United States - Europe's largest export market - and the continuing fallout from the Russian-Ukrainian crisis, and related price increases. Food and energy, according to the British newspaper "The Guardian".
Nomura predicted that the European economy will start contracting over the second half of 2022 and that the recession will continue until the summer of 2023, with a total drop of 1.7 percent of GDP.
Energy prices did indeed rise in the second half of 2021 when leading economies lifted coronavirus-related lockdown restrictions, but Russia's military operation in Ukraine added an extra amount of hardship, with the European Union, the United States and Britain seeking to isolate Russia economically, according to the newspaper.
The newspaper pointed out that Europe is still heavily dependent on Russia for energy supplies, while Russian President Vladimir Putin responded to the sanctions by slowing the pace of gas supplies; Russia cut gas supplies via the Nord Stream 1 pipeline to Germany and the Turk Stream pipeline to Bulgaria, and stopped supplies to Poland via the Yamal pipeline.
This comes as the annual rate of inflation in the euro area reached 8.6% in June, the highest rate recorded since the founding of the bloc in 1999.
The most important weekly developments in the global oil markets
The Organization of Arab Petroleum Exporting Countries (OAPEC) published the weekly developments in the global oil markets in light of the Russian-Ukrainian crisis.
Oil prices fell during the month of June 2022, recording their first monthly losses since November 2021, and oil prices recorded 111.63 dollars per barrel for the futures contracts for the international standard Brent, and the US West Texas Intermediate crude futures contracts recorded 108.43 dollars per barrel.
The report added that oil prices were negatively affected by both.
1- Growing concerns about the slowdown in global economic growth and consequently the demand for oil, with central banks raising interest rates to curb inflation.
2- US crude oil production rose to its highest level since April 2020.
3- The increase in US gasoline and distillate stocks, with the increase in refinery operation rates, to their highest seasonal level in four years.
4- Reconfirmation of the OPEC + countries on the production increase mechanism planned for the month of August 2022, which amounts to 648,000 barrels per day.
5- The rise in the US dollar index amid expectations of accelerating the pace of raising interest rates, which makes oil more expensive for holders of other currencies.
6- Increasing profit-taking by investors in the American market before the weekend and Independence Day, which lasts for three days.
The report indicated that oil prices received support from the study of the Group of Seven major industrialized countries for the possibility of establishing a “mechanism to set a maximum price for buying and selling oil at the global level, and fears about the scarcity of supplies due to the lack of production capacity in some OPEC + countries, production disturbances in Ecuador and Libya, and the expected disruption in Oil supplies from Norway.
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