The WTI for delivery in January fell to US$71.75, before ending the day at $72.01 in New York. Meanwhile, the barrel of Brent of the North Sea for delivery in February yielded 2.74% to the close at $77.17 in London.
In the average of the last four weeks, which is the way the market prefers to measure demand, the data shows a figure 7% lower than that of the same period last year.
Already in the week ending December 2, overall commercial crude oil reserves fell by 5.2 million barrels (mb), much more than the 3.4 mb expected by analysts, according to the consensus compiled by the Bloomberg agency.
In the same period, US strategic reserves were reduced by 2.1 million barrels.
The drop in commercial reserves is largely explained by an increase in crude oil refining.
Refineries operated at 95.5% of their capacity, compared to 95.2% The last week. This is the highest level since August 2019.
Meanwhile, the reserves of distilled products also grew significantly, 6.2 mb.
In turn, crude oil exports fell more than 30% last week in the United States, and imports remained stable.
“The report shows that the economy is clearly weakening and offers no reason” to those looking to buy “in the midst of this weakness,” Moya summed up.
“We are in December and the demand for distilled products is going for its fifth consecutive week of decline,” added Robert Yawger of Mizuho.
For Bart Melek, from TD Securities, “the brutal drop in oil prices is due” above all “to a reassessment of the risk linked to the offer”, a risk that “is evaporating”.
“Traders unwind positions after betting on a price rise after the launch of a price cap for Russian oil” on Monday, a rise that ultimately did not materializeMelek maintained.
“A few weeks ago, the end of cheap oil was anticipated, $200 a barrel,” recalls Yawger. “It’s the opposite of what happened,” she remarked.
In addition, after the decision of Opec+ (OPEC and its allies) on Sunday to maintain its production levels or the entry into force of a European embargo on Russian crude transported by sea, “no barrel was lost,” he added. the analyst.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
