Around 6:20 p.m., the barrel listed in London fell by 3.35% to 79.91 dollars. In New York, the WTI posted a loss of 3.26% to 74.42 dollars.
Brent oil slid below the symbolic bar of 80 dollars a barrel on Tuesday, weighed down by a potential burst of rate hikes from the major central banks, amid uncertainty over the impact of new sanctions once morest Russian crude.
Around 5:20 p.m. GMT (6:20 p.m. CET), a barrel of Brent from the North Sea for delivery in February lost 3.35%, to 79.91 dollars.
Its American equivalent, a barrel of American West Texas Intermediate (WTI), for delivery in January, fell 3.26% to 74.42 dollars.
This new fall in black gold prices brings the two world references to levels close to their lowest levels for the year, the day following the entry into force of the European embargo, but also the cap at 60 dollars. the barrel of Russian oil by the G7 countries, the EU and Australia.
For Craig Erlam, an analyst at Oanda, “in many respects, this does not improve visibility in the crude oil sector; one can even say (that these measures) make the outlook more uncertain”.
At this stage, “it seems that the only thing guaranteed on the oil market for the moment is volatility”, he asserts.
Moscow has repeatedly asserted that Russia will not sell oil to countries applying the cap.
But Urals, Russia’s variety of oil, is currently selling for just over the set limit of $60 a barrel. For Mr. Erlam, this ceiling is probably considered by investors as a “status quo”, especially as Russia tries to improve its “ability to circumvent sanctions”.
“This means that production remains stable overall,” he points out.
On Sunday, the Organization of the Petroleum Exporting Countries and their allies (OPEC+) also opted for the status quo, namely a reduction in their production objectives of two million barrels per day until the end of 2023 compared to their quotas before the October meeting.
A cautious decision that Energi Danmark analysts explain by “the continuing uncertainty regarding the effect of the new sanctions on Russian oil”.
Added to this are the uncertainties surrounding the epidemic situation in China, the world’s largest importer of crude oil, which despite recent efforts, persists in its strict health policy which nevertheless slows down its growth, and thus its demand.
In addition, heavy losses had already been recorded at the end of the day on Monday and continued on Tuesday, following indicators revealing that the American economy “is still dynamic”, explained Ricardo Evangelista of ActivTrades, “opening the way for new interest rate hikes”.
However, a new interest rate hike by the US Federal Reserve (Fed) in mid-December would reduce “the outlook for growth in the short and medium term, a scenario that would lead to a drop in demand for oil”, continues the analyst. .
This would also provide support for the greenback. And since crude trades in dollars, its appreciation reduces the purchasing power of buyers using foreign currencies.
