(New York) Oil prices fell sharply on Wednesday, weighed down by U.S. crude inventory data that showed an accumulation, coupled with dashed expectations of an easing of COVID-19-related restrictions in China.
Posted at 4:11 p.m.
A barrel of Brent from the North Sea for delivery in January 2023 fell 2.84% to 92.65 dollars.
A barrel of US West Texas Intermediate (WTI) for December delivery fell 3.46% to $85.83.
Crude prices fell after the US Energy Information Agency (EIA) reported that weekly US commercial crude supplies rose sharply.
During the week ended November 4, these commercial crude inventories rose by 3.9 million barrels while analysts bet on a small increase of 250,000 barrels according to median forecasts.
This is explained in particular by an increase in production to 12.1 million barrels per day (+200,000 barrels per day) and by a reduction in exports (-404,000 barrels per day).
Prices also remained down because the scenario of a Chinese recovery from COVID-19 was postponed, “China losing its battle against COVID-19”, estimated Edward Moya of Oanda.
Also, he said, “the weakness in oil could have been much greater had Republicans performed better on Tuesday night.” “A strong Republican wave would have meant greater pressure to increase production” of crude, assured the analyst.
The full results of the congressional elections were not yet known. The Republican opposition should dominate the House of Representatives, but not to the extent that was expected, the Republican wave having not taken place. As for the Senate, four seats are still uncertain.