2023-10-05 19:18:16
Brent ended with a drop of 2.09% to 84.07 dollars and WTI ended with a fall of 2.26% to 82.31 dollars.
Oil prices recorded a fifth session of decline in six trading days on Thursday, eaten away by fears of a decline in demand under the effect of offensive monetary policies.
The price of a barrel of Brent from the North Sea for delivery in December fell by 2.09%, to close at $84.07.
The American West Texas Intermediate (WTI), expiring in November, lost 2.26% to $82.31.
In six sessions, Brent fell by 14% and WTI, by 13%.
“The surge in bond rates has cast doubt on the global economic outlook,” and on the globe’s appetite for black gold in the months to come, explained Edward Moya of Oanda in a note. These rates increase the cost of money and threaten to curb consumption.
“Petroleum products are showing signs of demand destruction” under the effect of soaring energy prices, underlines Robert Yawger of Mizuho.
Gasoline volumes delivered to the United States fell last week to their lowest level in 25 years for this time of year, according to figures released Wednesday by the United States Energy Information Administration. (EIA).
Furthermore, the harvests in the northern hemisphere and the approach of winter usually push the prices of diesel and heating oil upwards once they enter autumn.
But since mid-September, the wholesale price of American diesel has fallen by more than 16%, and its European equivalent by more than 15% compared to Friday.
As for American fuel oil, it plunged by 18% in three weeks.
“This means that there is less demand for crude” from refineries, explains Robert Yawger, which might encourage them, according to him, to extend their maintenance season, traditionally in October, which would further reduce their needs.
For the analyst, WTI should find support around 81 dollars if it continues to decline, and even more at 80. At these levels “the fundamentals would no longer justify continuing to fall.”
“The commitment of Saudi Arabia and Russia to extend their reductions” in volumes “provides a floor” for prices, according to Susannah Streeter of Hargreaves Lansdown.
“OPEC+ (Organization of the Petroleum Exporting Countries and its allies) has made a lot of effort to bring crude back to $90 per barrel,” recalls Edward Moya, “and it is likely that they will do everything they can. can to ensure that prices do not return to their lowest of the year”, around 65 dollars for WTI.
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