(New York) Oil prices played a roller coaster on Monday, the fear of a further tightening of US monetary policy dampening the surge following the entry into force of the European embargo on Russian oil.
The price of a barrel of Brent from the North Sea, for delivery in February, dropped 3.37%, to close at 82.68 dollars. It pranced initially in the green, taking up almost 4%, before switching to negative.
Same trajectory for the barrel of American West Texas Intermediate (WTI), with maturity in January, which gained up to 3.42%, before ending down 3.81%, 76.93 to dollars.
The market got off to a flying start, boosted by the entry into force on Monday of the European embargo on deliveries of Russian oil by sea.
As for Russian deliveries to other destinations, European carriers and insurers, key players in the market, will only be able to contribute if the buyer respects a ceiling price, set at 60 dollars.
According to the CME exchange, the price of the Urals, the main benchmark for Russian crude, was around $64 on Monday, close to the ceiling.
“European sanctions and the price cap will likely lead to a disruption of trade flows”, commented analysts from the Eurasia Group firm, in a note, which poses uncertainty on the level of supply and encourages a rise in prices. .
Even though European imports of Russian oil had already fallen sharply, “flows had not fully adjusted” to other destinations, they explained. In addition, “some buyers will remain cautious in their purchases of Russian crude before the transaction rules become clearer”.
Brokers also saw an element of support in the maintenance unchanged, Sunday, by the Organization of the Petroleum Exporting Countries (OPEC) and its allies of the OPEC + agreement of their level of production, even if the rumor of a possible new reduction will have long hovered.
But, according to Price Futures Group’s Phil Flynn, the momentum was broken by an article in the wall street journal which suggested that the US central bank (Fed) could continue to raise its key rate longer than expected by operators.
“It turned the market upside down,” according to the analyst. “We were focused on supply, which is tight, and good news from China, but all that has been erased by the apprehension of a more aggressive Fed in its rate hikes”, which could put a sharp brake on the economy. economy and stifle the demand for oil.