(New York) Oil prices edged lower on Thursday as China’s COVID-19 surge weighs on demand prospects, while European gas prices rebound after falling to their lowest since the Russian invasion. from Ukraine.
A barrel of Brent from the North Sea for delivery in February ended down 1.20% at 82.26 US dollars.
Its American equivalent, a barrel of West Texas Intermediate (WTI) for delivery the same month, fell 0.70% to 78.40 dollars.
Prices, which were much lower in the morning (-1.80% for WTI), regained ground after the publication of weekly US oil inventories, which rose while analysts expected them to decline.
During the week ended December 23, these commercial reserves increased by 700,000 barrels, while analysts expected a decrease of 1.2 million.
An acceleration of the activity of refineries, an increase in imports and the reduction in exports explain in particular the swelling of these stocks. In addition, this data was collected just before the cold and the blizzard that hit the United States and has not yet impacted refining capacities as analysts expected, said Andy Lipow of Lipow Oil. Associates.
In conclusion, these American figures “have rather supported prices, especially since they have shown strong demand for fuel during this week of travel, one of the best weeks for a long time in terms of consumption”, noted John Kilduff of Again Capital, interviewed by AFP.
But overall, the negative price trajectory was to be attributed to “the post-reopening COVID-19 wave that we see in China”, explained Derren Nathan, analyst at Hargreaves Lansdown.
Chinese hospitals have been overwhelmed by an explosion of cases since Beijing ended its strict “zero COVID-19” policy that had largely contained the outbreak.
“Concerns about the blow to international mobility” as several countries now require negative tests for travelers from China, he detailed.
Also for John Kilduff, “all eyes are on China”, investors seeking to know how demand will rebound with the lifting of health restrictions. “People are no longer forced to confine themselves, but they confine themselves voluntarily because they do not want to get sick,” summarized the analyst.
On the natural gas side, the European benchmark, the Dutch TTF contract for delivery the following month, closed at 83.80 euros per megawatt hour.
The day before, it had fallen to 76.18 euros, a level not seen since the end of February 2022 and the beginnings of the Russian invasion of Ukraine.
“Faced with the decline of Russian exports, it seems that Europe has managed to store enough gas to at least survive the winter,” explains Michael Rae, analyst at M & G Investments.
Relatively mild weather has allowed prices to retreat, but Mr. Rae points out that prices remain high compared to their historical average.