(New York) Oil prices ended slightly lower on Tuesday, handicapped by a higher than expected American inflation figure as well as by doubts about OPEC+’s compliance with its production cuts.
The price of a barrel of Brent from the North Sea for delivery in May fell by 0.35%, to close at $81.92.
A barrel of American West Texas Intermediate (WTI) maturing in April lost 0.47% to $77.56.
Operators poorly received the latest American CPI price index, the increase of which came to 3.2% over one year in February, above the 3.1% expected by economists.
Excluding energy and food, the increase reached 0.4% over one month, against 0.3% expected, which constitutes the second consecutive acceleration after January (0.3% against 0.2% in December).
“Inflation is high and rising” in the United States, said Stephen Schork of the Schork Group. “Consumers are losing purchasing power as prices rise and this is weighing on the market” for oil.
After remaining quiet during the winter, energy could further complicate the inflation equation. The price of retail gasoline is up 6% over one month in the United States.
The market could have relied on the small increase in the demand estimate published Tuesday by the Organization of the Petroleum Exporting Countries (OPEC) for 2024, to 104.46 million barrels per day, against 104.40 previously.
Another positive element for prices, the Ukrainian strikes which hit two Russian refineries in Orel and Kstovo, in the west of the country. According to the Russian daily Kommersant, the Kstovo refinery, one of the largest in Russia, had to be shut down due to a fire.
But the headwinds were too strong, because in addition to American inflation, operators saw new indications casting doubt on the propensity of OPEC and its allies in the OPEC+ agreement to respect the production cuts on which they agreed. are engaged.
According to figures released Tuesday by OPEC, the cartel saw one of its members, Iraq, produce 200,000 barrels more daily than the level it set.
Furthermore, during a public intervention, Russian President Vladimir Putin stressed that “production (of OPEC+ was decreasing) while it (increased) in other countries” not members of the alliance, “and we could lose market share.”
“When a major producer talks about losing market share, it means that it will continue to produce and undermine” the efforts of OPEC+ to support prices, estimates Stephen Schork.