Oil price | Best week since August

(New York) Oil prices ended higher on Friday, posting their best week since August, despite their correction the day before in a market disoriented by uncertainties around the Omicron variant.






The price of a barrel of North Sea Brent for February delivery rose 73 cents, or 0.98%, to $ 75.15.

In New York City, a barrel of West Texas Intermediate (WTI) for the month of January was also up 73 cents, or 1.02%, to $ 71.67.

Crude prices, which posted an increase of almost 8% over the week, thus returned to their level of mid-September.

The release of the US inflation figure, at 6.8%, a highest in almost 40 years, according to the CPI index, accelerated the rising price curve during the session.

“As soon as inflation was announced and was in line with expectations, the dollar was immediately observed to slide and crude prices rise,” said Matt Smith, director of commodities research for the ClipperData cabinet (petroleum).

Next week promises to be full of events for the market, between OPEC’s monthly demand report and US oil stocks which “should start to decline at the end of the year,” according to Matt Smith.

The black gold market remains concerned about the COVID-19 pandemic, however, worried about whether the Omicron variant will push for new containments, limiting travel and therefore the demand for oil.

So far, few serious cases have been identified.

But “concerns persist because of the risk of higher transmissibility,” said Jim Reid, analyst at Deutsche Bank, pointing to the restrictions put in place in the United Kingdom.

Another source of uncertainty hanging over the crude market: negotiations have resumed in Vienna between the West and Tehran on the Iran nuclear deal.

But for now, Washington does not seem very optimistic.

“In view of the continued advances in Iran’s nuclear program, President (American Joe Biden) has asked his team to prepare for the event that diplomacy fails,” White House spokeswoman Jen Psaki said Thursday, citing “additional sanctions” against Tehran’s sources of income.


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