Oil in the red, rising production and stagnant demand

Around 10:05 a.m. GMT (11:05 a.m. CET), the price of a 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, for delivery in January, loses 1,16% has 71,72 dollars.

Its American equivalent, the barrel of West Texas Intermediate (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 December, drop of 1,18% has 67,89 dollars.

???? Monthly reports from the International Energy Agency (IEA) and the United States Information Agency released this week “remain discouraging regarding next year's consumption“, recalls Tamas Varga, analyst at PVM.

“The surplus could be even more pronounced if OPEC+ implements its plans to restore previously interrupted production“, explains John Plassard, analyst at Mirabaud, referring to the IEA report.

???????? China's slowdown, weighed down by sluggish consumption and a severe real estate crisis, is weighing down demand for black gold, with the price of the resource being strongly correlated to the economic health of the Asian giant, world's largest importer of oil.

???????? Furthermore, since Donald Trump's victory in the American presidential election, black gold has suffered from the appreciation of the dollar, close to its highest level in two years.

Since the price of oil is expressed in dollars, a stronger greenback makes it relatively more expensive for foreign buyers and contributes to lower demand.

The president-elect is a strong supporter of fossil fuels and the market expects favorable conditions for American producers, which would lead to even more abundant supply from the United States.

????️ Other countries such as “Brazil, Canada and Guyana” should also contribute to the increase in production, explains Jorge Leon, analyst at Rystad Energy.

(c) AFP

Commenter Oil in the red, rising production and stagnant demand