(New York) Oil prices fell to their lowest level in a month and a half on Friday under pressure from new health restrictions in Europe against the COVID-19 epidemic, which raise fears for demand for black gold.
The price of a barrel of North Sea Brent for January delivery fell $ 2.35 or 2.89% to $ 78.89.
In New York, a barrel of West Texas Intermediate (WTI) for the month of December, which is the last day of trading, lost $ 2.91 or 3.68% to $ 76.10.
Over the week, Brent fell 4.26% and WTI fell 5.81%.
“A combination of factors explains the pressure on prices: the rise in COVID-19 cases and potential lockdowns, rumors and murmurs about a possible coordinated spill of part of the strategic oil reserves, and the stronger dollar” , summarized for AFP Matt Smith, head of oil analysis for the data provider specializing in raw materials Kpler.
General containment of the population has been announced in Austria with the obligation to be vaccinated and restrictive measures are resurfacing in Germany.
“It brings prices down, and that’s welcome for the Biden administration, as it should spill over into the price of gasoline at the pump,” the analyst stressed, adding that the fall in prices “didn’t was only a reflection of a feeling of worry without anything concrete ”.
“Perhaps we will not need to draw on strategic reserves”, if the rumor is enough to temper prices as the government of Joe Biden wants, in the face of the general rise in consumer prices. United States, the analyst suggested.
A possible drain by the US administration of the country’s strategic reserves, which struggles with persistent inflation fueled by high energy prices, has been on the table for several weeks, but has not materialized.
“Traditionally, strategic reserves are used for geopolitical or climatic reasons, not for political objectives,” he recalled.
The strengthening of the dollar against the euro, close to its lowest since early July 2020, and against the pound sterling were not helping prices. “In a context of concerns about inflation, we see an appreciation of the dollar which will weigh on prices,” summarized the Kpler analyst.