London (awp/afp) – Oil prices climb slightly on Wednesday, despite abundant supply on the market, driven by news from COP29, where leaders of rich countries, inspired by Donald Trump, are reluctant to accelerate exit efforts fossil fuels.
Around 10:30 GMT (11:30 CET), the price of a barrel of Brent from the North Sea, for delivery in January, rose 0.75% to $72.63.
Its American equivalent, a barrel of West Texas Intermediate (WTI), for delivery in December, gained 0.79%, to $68.86.
The day’s increase is linked to a relative reassessment of “the geopolitical data” of a Donald Trump presidency, explain Energi Danmark analysts.
The return of Donald Trump, very favorable to fossil fuels, to power in the United States for four years, thwarts efforts to accelerate the reduction of greenhouse gas emissions.
“Nothing yet indicates that the use of fossil fuels has reached its maximum,” declared Professor Pierre Friedlingstein, of the British University of Exeter, on the third day of a COP29 where leaders of rich countries are reluctant to accelerate climate efforts.
Furthermore, “Israel’s withdrawal from ceasefire negotiations in Lebanon” raises fears that the conflict will eventually extend to Iran, estimates John Evans, analyst at PVM.
Iran is among the ten largest oil producers and has the third largest proven reserves behind Venezuela and Saudi Arabia. An attack on its energy infrastructure would cause supply disruptions and a sharp rise in prices in the short term.
For the moment, oil prices remain at relatively low levels, after a drop of almost 5% in two sessions, Friday and Monday, due to a market with excess supply.
OPEC (Organization of the Petroleum Exporting Countries) lowered its oil demand forecasts on Tuesday for the fourth consecutive month, due to downward revisions regarding demand from China, the world’s largest importer of black gold, including the economic slowdown has been dragging down prices for several months.
Monthly oil demand and production reports from the U.S. Information Administration and the International Energy Agency (IEA) are also due this week.
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