The crude West Texas Intermediate (WTI), which trades on the New York futures market (Nymex), it fell 7.9% to settle at US$95.84, the lowest since April.
In the same bearish direction, oil North Sea Brentwhich does so in the London electronic market (ICE) and is the benchmark for Argentina, it lost 7.1%, to US$99.49, its lowest value since last February 25.
“Markets remained divided between fears of a recession in the US, Europe and Chinawhich could reduce oil consumption, and the reality in which the supply and demand of the market is still very tight,” said Jeffrey Halley, an analyst at the firm Oanda.
The new Chinese restrictive measures in the face of the appearance of new cases of covid-19 and that threaten to reduce demand are the new determinants of market uncertainty.
China, which applies a severe “zero tolerance” policy towards the coronavirushas suffered in the last three months a wave of outbreaks attributed to the omicron variant that has caused record numbers of infections not seen since the start of the pandemic in the first half of 2020.
Oil demand growth will continue in 2023, but at a slightly less sustained pacein an evolution similar to world economic growth, according to a first OPEC forecast for next year, published on Tuesday.
“By 2023, global oil demand is expected to rise to 2.7 million barrels per day (mb/d) and average 103 mb/d, with an increase of 0.6 mb/d in developing countries. the OECD and a growth of 2.1 mb/d outside the OECD,” details OPEC’s monthly report for July.
The institution is based on a assumption of 3.2% global economic growth in 2023in decline with respect to the projections for 2022 (3.5%).
“This assumes that the consequences of the pandemic, geopolitical developments in Eastern Europe and global financial tightening – in a context of rising inflation – do not excessively negatively affect growth dynamics by 2023,” OPEC warned.
This could in turn affect growth, as could health measures aimed at containing the progression of the pandemic.
As for supply from non-OPEC producing countries, it is expected to grow 1.7 mb/d in 2023, “supported by higher demand.”
OPEC crude output rose 234,000 b/d in June from May to about 28.72 mb/d, according to secondary (indirect) sources cited in the report. By 2022, demand growth forecast unchanged from last monthof 3.4 mb/d, with a progression of 1.8 mb/d for OECD economies and 1.6 mb/d for non-OECD countries, reaching an average of 100.3 mb /d.
Meanwhile, President Joseph Biden is scheduled to visit Saudi Arabia this week during a tour of the Middle East and hold a summit with Saudi Crown Prince Mohammad bin Salman and the leader of the United Arab Emirates in a bid to control high energy prices that have shaken the world economy.
The White House believes that oil-producing countries have the space and capacity to increase production.
Relations between Washington and Riyadh are at their lowest point as a result of the lack of support from the Arab countries to appease the rise in oil prices and avoid their impact on the high levels of inflation that are harming the main economy. of the planet.
Source: Ambito
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