(New York) Oil prices rebounded Thursday, stabilizing in a volatile session, with investors looking for bargains after black gold hit a month-long low the previous day.
The price of a barrel of North Sea Brent for January delivery rose 1.19% or 96 cents to $ 81.24.
Earlier it had reached a low since early October at 79.28 dollars when the market fears to see an abundant supply coming from the strategic reserves of the United States, but also of China.
In New York City, a barrel of West Texas Intermediate (WTI) for the month of December rallied 0.82% or 65 cents to $ 79.01. Earlier in the session, it sank to $ 77.08, also the lowest since early October.
“It was a session driven in part by a hunt for bargains after the fall of the day before and by the fact that there is still no solid news on the side of a possible drain on strategic oil reserves” , said James Williams of WTRG Economics.
As inflation rises sharply in the United States, President Joe Biden seeks to moderate the rise in fuel prices, and may decide to tap into strategic crude reserves.
“According to press reports, the United States is trying to convince China to also use its strategic reserves to help consumers as Christmas approaches,” said Michael Hewson, analyst at CMC Markets.
For Phil Flynn of Price Futures Group, “with regard to China releasing oil from its reserves, this has already been done and it has had little impact.” “The last time they did it, it only had a short-term effect on prices, then prices went up,” he said.
Driven in recent months by the rebound in demand with the end of lockdowns linked to the COVID-19 pandemic, crude prices have remained up 55% for European Brent and 60% for US WTI since the start of the year.
But the resumption of the pandemic, and the restrictive measures which are starting to be implemented again, are contributing to the recent decline in prices.
Despite the strong demand, OPEC + (Organization of Petroleum Exporting Countries and Its Allies), which had sharply reduced its production in the first months of the pandemic, decided to turn on the tap very gradually, forcing consumer countries to use their trade reserves and driving up prices.