2023-12-12 22:03:00
Closing price: Oil prices resumed their fall on Tuesday weighed down by fears of an oversupply of crude, by a gloomy global economic outlook and by American inflation which is not slowing down as easily. European gas continued its decline until to its lowest in almost three months.
The barrel price of Brent BRENT Brent, or North Sea crude, is a variation of crude oil serving as a benchmark in Europe, listed on the InterContinentalExchange (ICE), a stock exchange specializing in energy trading. It became the first international standard for setting oil prices. from the North Sea, for delivery in February, dropped 3.66% to 73.24 dollars.
Its American equivalent, the barrel of West Texas Intermediate (WTI WTI West Texas Intermediate (WTI), also called Texas Light Sweet, is a variation of crude oil that serves as a standard in setting the price of crude and as a raw material for oil futures contracts with the Nymex (New York Mercantile Exchange). ), the stock exchange specializing in energy.) for delivery in January, lost 3.79% to $68.61.
The two global crude benchmarks thus fell to their lowest level since the end of June.
Inflation in the United States slowed over one year to 3.1% (CPI index) but regained strength over one month, in November, at +0.1% and +0.3% for inflation underlying, excluding food and energy.
“Inflation is certainly not slowing enough for the Fed to suggest the future possibility of a rate cut,” John Kilduff of Again Capital told AFP.
The central bank concludes a monetary policy meeting on Wednesday where a status quo on rates is widely expected.
“But the market was hoping for more accommodating comments on the continuation of monetary policy” which may not occur given the tone of inflation, explained Mr. Kilduff.
Jerome Powell, head of the Fed, will hold a press conference on Wednesday at 7:30 p.m. GMT.
At the same time, “with US production still high and concerns regarding the health of the Chinese economy, the short-term demand outlook seems uncertain,” underlines James Harte, analyst at Tickmill.
American crude production is in fact at a record level and the United States is “a major exporter of crude and refined products, which might be a problem for Opec and the maintenance of prices, recalled John Kilduff .
Investors are also worried regarding the acceleration of deflation in China in November, due to the fall in energy and food prices, according to official data published on Saturday by the National Bureau of Statistics (BES ).
For Tamas Varga, this is a “sign of sluggish demand from the world’s second largest economy”.
The two oil benchmarks have lost between 25 and 28% since their highs of the year, reached at the end of September, when the Brent BRENT Brent, or North Sea crude, is a variation of crude oil serving as a benchmark in Europe, listed on the InterContinentalExchange (ICE), a stock exchange specializing in energy trading. It became the first international standard for setting oil prices. had come close to $100 per barrel.
On the European natural gas side, the Dutch TTF futures contract, considered the European benchmark, fell to 34.860 euros per megawatt hour (MWh), down 3.48%, following having touched 34.505 euros per MWh, its highest low prices since September.
“Prices are dampened by the prospect of a prolonged period of mild temperatures,” comments Barbara Lambrecht, analyst at Commerzbank, recalling that heating is the main driver of demand during the winter months.
(c) AFP
Comment Oil at lowest in six months following US inflation
Community barrel price
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