Brent ended with a loss of 0.85% at 82.45 dollars and WTI ended with a depreciation of 0.83% at 75.68 dollars.
Oil prices fell on Monday, misguided by a leading US indicator which fuels questions regarding the demand for black gold, in a hesitant market.
The price of a barrel of Brent from the North Sea for delivery in April fell 0.85%, to close at 82.45 dollars.
As for the barrel of American West Texas Intermediate (WTI), also expiring in April, it dropped 0.83% to 75.68 dollars.
“Last week, we were worried that the economy was too strong, and today, we fear that it is too soft. The market can’t make up its mind,” commented Phil Flynn of Price Futures Group.
This reversal was partly caused by an indicator, durable goods orders in the United States, which fell 4.5% over one month in January, once morest an increase of 5.1% in December.
“The market is torn between concern regarding rate hikes in the United States”, which might slow consumption of hydrocarbons, “and the hope of a vigorous rebound in Chinese demand”, observed in a note the Eurasia Group analysts.
In the United States, where commercial stocks of crude remain on seven consecutive weeks of increase, operators are concerned regarding the weak appetite of the American economy for refined products.
“We will have to wait for the refineries to resume service” following the traditional maintenance period in February to gauge demand and “see the market take a clear direction”, according to Phil Flynn.
Several PMI activity indicators expected this week, particularly in China and the United States, should give an initial idea of the trajectory of several economies in February.
Traders were insensitive to the announcement on Saturday by Polish oil company PKN Orlen, which announced the halt in deliveries of Russian oil through the Druzhba pipeline.
Bank of America analysts have revised their price forecast for the barrel of Brent for the year 2023 to 88 dollars on average once morest 100 so far, mentioning a “slower start to the year than expected”.
“Absent clear signals of tension between supply and demand, which we should not see before the second quarter, market sentiment is likely to persist,” predict analysts at Eurasia Group.
