BAKU, Azerbaijan, Dec. 14
By Khagan Isayev - Trend:
The Brent crude oil price on the London Stock Exchange decreased by 1.22 percent on December 14 compared to Dec. 10 and was below $75 per barrel, Azerbaijani expert in energy issues Ilham Shaban told Trend on Dec. 14.
"The London Stock Exchange explained that this fact has been caused by the spread of exaggerated information in the world media outlets about the threat of the new Omicron COVID-19 variant on oil market prices," Shaban said.
Moreover, the reason for this was a statement made by Saudi Arabia.
“Oil demand may not be at the level expected in early 2022,” the expert said. “If investments in the oil industry remain at the current level, there will be an oil shortage by 2030. At the same time, investments in the oil industry decreased by 30 percent compared to the previous years.”
After this statement, the market participants saw that Omicron's impact on the market was small. As a result, the prices exceeded $75.
“This has also disappointed the market participants,” Shaban said. “As far as fewer investments are made in the oil sector, banks try not to finance traditional energy and oil exploration projects, while companies strive to get benefit from exploration, accumulation of reserves and production rather than acquire valuable capital from banks.”