The monetary and financial adviser to the Head of State, Mazhar Muhammad Salih, had expected a recovery in oil prices after their rapid decline in international markets recently.
That’s what saleh told”The decline in oil prices will result in a huge disaster in the investments of US oil companies operating in the sector of extracting shale oil in case global oil prices slide below $70 per barrel, which will make their operations struggle.”
He stated that “the American monetary policy is bound to head inevitably towards an expansionary policy to face the current recession led by the quantitative easing policy via the possibility of the Federal Reserve to reduce interest and stimulate liquidity to face challenges of deterioration of the American economy and provide necessary protection to the financial investors in particular against the collapse of financial markets including futures markets operating with crude oil contracts.” This was in relation to the U.S. government response to the recession.
“All of these factors will shorten the paths of the decline in the oil asset cycle so that oil markets can recover, if that cycle occurs and leads to a deterioration in oil prices,” Saleh explained.
Oil costs rose today to $79 per barrel after Brent unrefined fell on Monday to its least level in seven months, following the decrease in worldwide securities exchanges.
Outright fates are expected to break a four-week run of losses, with Libya’s largest oilfield closed, U.S. reserves about to fall for the 6th week in a row, and Ukraine’s attacks against Russia spurring the meeting.
In the mean time, interest for stream fuel is working on in China, an uncommon brilliant spot following quite a while of negative signs, including information this week showing the world’s greatest unrefined shipper took in the least barrels in very nearly two years in July.
