2023-07-05 12:05:00
London: Oil prices fell on Wednesday following a disappointing indicator from China revived fears for demand, even if the voluntary cuts in supply from OPEC + temper these concerns. Around 09:45 GMT (11:45 CET), the barrel 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 has become the first international standard for setting oil prices. North Sea for September delivery fell 0.41% to $75.94.
Its American equivalent, the barrel of West Texas Intermediate (WTI WTI West Texas Intermediate (WTI), also known as Texas Light Sweet, is a variation of crude oil that serves as a standard in pricing crude oil and as a commodity for oil futures contracts with the Nymex (New York Mercantile Exchange). ), the stock exchange specializing in energy.) for August delivery, traded at $71.07, lower than the previous day.
But the prices being compared to those of Monday due to a public holiday Tuesday in the United States, it took 1.83% compared to the last official close.
Activity in services in China grew in June but at one of the weakest rates of the year, the latest sign that the post-Covid recovery in the country is running out of steam, according to an independent index published on Wednesday.
Consequence for the oil market, “prices are pulled down by macroeconomic concerns”, sluggish global growth presages limited demand, notes Tamas Varga, analyst at PVM.
These concerns prevent prices from rising more sharply despite the prospect of reduced supply following the announcement on Monday of an extension of the voluntary production cut by Saudi Arabia and a limitation on Russian exports.
“Courses have benefited from the announcement but the market reaction is limited,” said Vivek Dhar, analyst at Commonwealth Bank of Australia.
“Saudi Arabia’s announcement was anticipated“, he adds, considering that the world’s leading exporter “will continue its limitations as long as prices have not recovered more clearly“.
Morgan Stanley analysts point out that “supply from Iran and Venezuela is slowly increasing”, offsetting some of the efforts of other members of the Organization of the Petroleum Exporting Countries and its allies (OPEC+).
Contrary to the usual schedule, data from the US Energy Information Agency (EIA) on commercial oil reserves in the United States will not be released on Wednesday but on Thursday.
(c) AFP
Oil drops, fears over the Chinese economy
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