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* BoE rises and warns of recession risks
Saudi Arabia and the United Arab Emirates save oil power in the event of a winter crisis
OPEC to raise oil production target to 100,000 bpd
* Adjusted global source gives value: analysts (updates values, adds main points in comments)
By Noah Browning
LONDON, Aug 4 (Reuters) – Oil costs fell on Thursday, with Brent reaching $93. 50 a barrel, the lowest level since Feb. 21 before Russia invaded Ukraine and raised costs, on fears of an economic downturn that could undermine fuel demand.
Brent futures fell $2. 88, or 3%, to $93. 90 a barrel at 15:43 GMT, while West Texas Intermediate Crude (WTI) futures fell $2. 37, down 2. 6%, to $88. 29.
Brent hit a low of $93. 50, the lowest since Feb. 21, while U. S. crude touched its lowest level since Feb. 3 at $87. 97.
The sale followed an unforeseen increase in U. S. crude inventories. UU. la last week. Gasoline inventories, the proxy for demand, also showed a surprising buildup as demand slowed, the Energy Information Administration said.
The demand outlook remained cloudy due to growing considerations about an economic collapse in the United States and Europe, over-indebtedness in market economies, and a strict COVID-19 0 policy in China, the world’s largest oil importer.
“A break below $90 is now a very genuine possibility, which is remarkable given the market tension and the few opportunities to ease it,” said Craig Erlam, senior market analyst at Oanda in London.
“But the recession narrative is becoming more and more potent and, if it were to become a reality, it would probably solve some of the imbalance. “
Other pressures followed fears that emerging market interest rates could slow economic activity and constrain fuel demand. The Bank of England (BoE) raised rates on Thursday and warned of recession risks.
An OPEC deal on Wednesday to raise its production target to just 100,000 barrels per day (bpd) in September, equivalent to 0. 1% of global demand, was seen by some analysts as bearish for the market.
OPEC heavyweights Saudi Arabia and the United Arab Emirates are poised to generate a “significant increase” in oil production if the world were to face a severe crisis this winter, resources close to the thinking of major Gulf exporters said. (Additional reporting via Laura Sanicola and Emily Chow; Edited by Bernadette Baum)