2023-12-06 21:00:00
Closing price: The price of a barrel of West Texas Intermediate (WTI), the American benchmark variety, closed on Wednesday below 70 dollars, a first in five months, on a market unable to find reason for a rebound, following a week of fall. 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 ended down 4.06%, at $69.38, following falling during the session to $69.11, its lowest level since the end of June.
Since the announcements by the Organization of the Petroleum Exporting Countries (OPEC) and its allies in the OPEC+ alliance on Thursday, the 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. remains on five consecutive sessions of declines and has dropped almost 9%.
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 became the first international standard for setting oil prices. from the North Sea, expiring in February, dropped 3.75% to 74.30 dollars.
Operators gave no credit to the promise of OPEC+ members of new combined cuts of 900,000 barrels per day, in net, from next January to March.
“And I don’t think we’ll see anything else from them by the end of the year,” warned John Kilduff of Again Capital. “They’re out of ammo.”
In addition to doubts regarding the commitments made at the end of the OPEC+ ministerial meeting, “the fear is growing that the Saudis will open the floodgates”, out of spite and to avoid losing more market share.
They remember the episode of 2014, during which Saudi Arabia decided to flood the market, in particular to counter the emergence of the United States and the shale oil boom. The price of 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. ended up falling to $26 in early 2016.
“Production reductions are not enough to compensate for the poor demand forecasts from China, the world’s largest importer,” said José Torres of Interactive Brokers.
The deterioration of the economy is also evident in the United States, where the private sector created only 103,000 jobs in November, according to the monthly survey by the ADP firm, published on Wednesday.
This is less than the 106,000 job creations in October and significantly below economists’ projections, which were counting on 130,000.
For Craig Erlam, this bad figure further accentuated the decline in black gold.
Traders also saw in the weekly report from the American Energy Information Agency material to bend prices.
If the main figure showed a marked drop of 4.6 million barrels in commercial oil reserves during the week ending December 1, analysts quickly opened the hood and noted that this was optical illusion.
“The report was rather bad”, overall, according to John Kilduff, who mainly remembered “the low demand for gasoline and the increase in stocks” of fuel.
The jump in gasoline reserves thus reached four times the 1.3 million barrels announced by analysts, to 5.4 million.
These figures were all the more notable because they included part of the Thanksgiving long weekend, a busy time for road and air travel in the United States.
“We were waiting for a signal of demand, and we didn’t get it,” explained John Kilduff. “It shook up operators positioned upwards and led to even more sales.”
(c) AFP
Comment WTI oil closes below $70 for the first time in five months
Community barrel price
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