Oil on the rise

(New York) Oil prices ended modestly higher, after a volatile session with amplitudes increased by the closeness of trade, as US crude inventories fell more than expected, a positive sign for demand.






In London, the price of a barrel of North Sea Brent for February delivery rose 0.36% to $ 79.23.

In session, the barrel of Brent crossed the symbolic bar of 80 dollars, reacting positively to the report of the United States Energy Information Agency (EIA), before falling temporarily.

In New York, a barrel of West Texas Intermediate (WTI) for the same month, which followed the same curve, rose 0.76% to 76.56 dollars.

The EIA announced a 3.6 million barrels drop in commercial US crude reserves, more than expected, showing strong demand for the third week in a row.

“The inventory report was constructive,” said Andy Lipow of Lipow Oil Associates.

“The oil market continues to be tight because of the increased demand for fuel oil to replace natural gas which has become very expensive, especially in Europe,” said the analyst.

But, explaining the volatility of prices, he believes that the market “remains struggling with the possible impact of the Omicron variant on demand while projects, trips, trips are canceled and more severe restrictions are put in place in Europe. and in China ”.

“We understand why prices go up and down,” he summed up.


source site-55

Latest