Oil prices are hesitating this Monday, November 18, 2024, oscillating between a slight drop and a cautious rise, with prices falling sharply last week due to Chinese demand which worries the market.
Around 10:05 a.m. GMT (11:05 a.m. in Paris), the price of a barrel of Brent from the North Sea, for delivery in January, rose 0.76% to $71.58.
Its American equivalent, a barrel of West Texas Intermediate (WTI), for delivery in December, gained 0.61% to $67.43.
“Weak Chinese demand remains one of the main reasons for the fall in prices,” says John Evans of PVM.
China is the world’s largest importer of oil and black gold prices are strongly correlated with the country’s economic health.
“Last week’s Chinese inflation figures demonstrate the lack of immediate growth in both consumer spending and industrial activity,” explains the analyst.
The consumer price index that measures inflation in October rose just 0.3% year-on-year, the lowest index in the last four months, demonstrating weak economic activity in China.
In 2025, the International Energy Agency (IEA) forecasts growth in global demand of one million barrels of crude per day, but an increase in production of one and a half million barrels per day alone. for producers who are not members of OPEC+ (Organization of the Petroleum Exporting Countries and its allies).
This expected surplus of supply causes a downward trend in crude oil prices.
Furthermore, since the results of the American presidential election, “the strengthening of the US dollar weighed on prices, reducing the attractiveness of dollar-denominated commodities”specifies John Plassard, analyst at Mirabaud.
The next determining factor for oil prices will be “the December 1st OPEC+ meeting”estimate DNB analysts.
© AFP
