(New York) Oil prices remained in reverse on Friday, still suffocated by the prospect of a decline in demand, but also oriented by signs of rapprochement between the United States and Saudi Arabia.
The price of a barrel of Brent from the North Sea, for delivery in January, dropped 2.40%, to close at 87.62 dollars. In ten days, Brent has lost more than 11%.
As for the barrel of American West Texas Intermediate (WTI), with maturity in December, it fell 1.91%, to 80.08 dollars.
In session, the WTI fell to 77.24 dollars, not far from the lowest since January recorded in September (76.25 dollars).
The market keeps in mind “the concern related to the demand” from China, against the backdrop of an outbreak of coronavirus cases, “which make it unlikely that the easing of health restrictions”, said analysts at Commerzbank.
The National Health Commission (NHC) on Friday reported a new high since late April, with 22,991 new cases. The rate of contagion has more than doubled in a week.
For Phil Flynn, of Price Futures Group, operators are concerned, more broadly, about a slowdown in demand caused by the brutal monetary tightening of the American central bank (Fed).
The psychosis is such that the black gold market went into a so-called contango situation on Friday.
This means that the price paid for oil that can be delivered at a later date is higher than the price for immediate delivery.
The phenomenon generally reflects a short-term market imbalance, due to weak demand or too abundant supply.
On Friday, the price of the WTI contract for delivery in March 2023 thus rose above that with expiry next December, a first for almost two years.
For Phil Flynn, in addition to the deterioration of the economy, the dropout of the crude is also explained by what seems to be a relaxation of the relations between the United States and Saudi Arabia.
The US government argued on Thursday that Saudi Arabia’s Crown Prince Mohammed bin Salman should be granted immunity from prosecution in the United States for the murder of journalist Jamal Khashoggi.
“Some speculate that this change in policy is related to oil”, detailed Phil Flynn, even if the White House assured Friday that this decision had “absolutely nothing to do with the bilateral relationship with Saudi Arabia. Saudi”.
Some of the operators are thus counting on the fact that in return for the opening of Washington, the Organization of the Petroleum Exporting Countries (OPEC) and its allies of the OPEC + agreement could “raise their production” at their next meeting. , December 4.
The cartel had decided in October to reduce its production by two million barrels per day from November to support prices.