By Khaled Al-Mutairi
KUWAIT, Aug 7 (KUNA) -- Two Kuwaiti oil analysts said on Sunday that global oil prices lost 8 percent of its value during last week due to fears of economy slowdown and US Energy Information Administration (EIA) that showed rise in oil stocks.
In a separate statement to (KUNA), they clarified that oil prices got support after (OPEC+) decision of "a slight increase" in production starting next September, by 100,000 barrel per day, less than previous increases approved by the alliance during the past months that amounted to 400,000 barrel per day.
Oil expert Ahmad Hasan Karam said to (KUNA) that oil prices reached record levels since the outbreak of the Russian-Ukrainian crisis, affected by the fact that Russia is being a key partner in the (OPEC+) alliance that aims at achieving global oil balance.
He assured that the current prices is a result to prior decisions by (OPEC+) to reduce production, which came as a response to the economic repercussions of the global (COVID-19) crisis and the accompanying general closures to confront the spread of the virus.
Karam explained that (OPEC+) alliance started during the past period to raise production gradually according to shares among members that contributed to control prices and KEEPING their high levels by controlling amounts supplied in the oil markets.
He indicated that there is a "great grumbling" from the major economic and oil-consuming countries over the current prices that exceed their capacity, as they demand on several occasions the oil-producing countries to increase their production in order for prices to return to levels of USD 70 per barrel, which they see as a "fair price."
For his part, the expert in the field of energy Jamal Al-Garabally said that expectations indicate that global economic recession will reduce the demand for oil in the coming months, expecting that oil prices would reach USD 85 and 90 per barrel through the last quarter of 2022.
Al-Gharabally added that the recent decision of the (OPEC +) alliance to increase production by 100,000 barrels, starting next September, will contribute to preserving some gains.
"This increase reflected the solid position of the Organization of Petroleum Exporting Countries (OPEC) and the (OPEC +) alliance in maintaining oil prices," he added. (end)