Brent ended down 2.08% at 83.63 dollars and WTI ended down 2.12% at 76.28 dollars.
Oil prices ended lower on Friday, driven by market uncertainty over the price cap calibration for Russian oil or OPEC’s decision in a few days.
The price of a barrel of Brent North Sea oil for January delivery dropped 2.08%, to close at $83.63.
As for the barrel of American West Texas Intermediate (WTI), also with maturity in January, it lost 2.12%, to 76.28 dollars.
For Phil Flynn, of Price Futures Group, the black gold was first cooled by the adjustment of the weather forecasts in the United States, which are counting on a cold month weather than initially forecast.
Operators are also closely monitoring developments in China, where the National Health Commission (NHC) noted more than 32,000 new cases in one day on Thursday, a record since the start of the pandemic.
“Containments that do not say their name are put in place in major Chinese cities”, including the capital, Beijing, “which will weigh heavily on economic activity and, by extension, on the demand” for oil, has warned Craig Erlam, of Oanda, in a note.
The other point of attention of the market concerns the discussions around the capping of the price of Russian oil, a project promoted by the United States.
The discussions, conducted under the aegis of the G7 with the European Union and Australia, were to continue on Friday to try to stop an effective ceiling.
Once defined, it would make it possible to escape the European embargo on the insurance and transport of Russian oil provided that the latter is sold at the ceiling price or below.
According to several media, the range discussed was between 65 and 70 dollars per barrel. “It’s more than expected,” said Phil Flynn, “which might mean that the supply of oil is not going to decrease.”
The Urals, the reference Russian variety, showed an unfavorable difference of 19 dollars compared to the price of Brent on Friday, according to the Chicago Stock Exchange (CME), which placed it slightly below 65 dollars.
Capping Russian oil at a price above its course would have almost no influence on trade.
Pending the outcome of these talks, traders were wondering regarding the strategy of the Organization of the Petroleum Exporting Countries (OPEC) and its allies in the OPEC+ agreement, which are due to meet on December 4.
For Commerzbank analysts, if the cartel should have, in fact, reduced, in November, its production only by around one million barrels per day and not by two as announced in October, the publication of updated figures might nevertheless support lessons.
In addition, following Saudi Arabia denied information from the Wall Street Journal on Monday regarding a possible surprise increase in production at the end of the next OPEC+ rally, operators are wondering.
“I wouldn’t be surprised if they decided to reduce their production,” for the second meeting in a row, said Phil Flynn. “They want a floor (for prices) at $70 and in some markets we’re already below that.”