A joint venture that includes Chevron and ExxonMobil is moving forward with a $36.8 billion expansion project in a Kazakhstan oil field, the companies announced Tuesday. Analysts say the decision to invest in expanded production at the Tengiz oil field could be a sign that the upstream sector is coming out of a prolonged slump driven by low oil prices.
Oil prices have rebounded somewhat in recent weeks, but some observers believe one more slide is imminent. Analyst Tom Kloza of OPIS told CNBC oil prices are likely to fall below $40 per barrel before they reach $55. Recent gains have been reversed by economic uncertainty over Britain’s “Brexit” vote, weakness in China’s economy and oversupply of crude oil and gasoline in the U.S.
SEE ALSO: U.S. now has more oil than Saudi Arabia, Russia
