(New York) Oil prices finally rebounded on Monday, boosted by bargain purchases by opportunistic operators, as well as colder weather in Europe and soon in the United States.
The price of a barrel of Brent North Sea, for February delivery, gained 2.48%, closing at $77.99.
As for the barrel of West Texas Intermediate (WTI), with maturity in January, it appreciated by 3.02%, to 73.17 dollars.
Brent and WTI remained on six negative sessions in a row, which had cut their prices by more than 12% each.
“We were looking for a floor, and in four or five weeks, we went [pour le WTI] over $90 [début novembre] to $70” on Friday, said Schork Report analyst and author Stephen Schork.
“Now we’re looking to bounce back,” he added, “and I expect that we’ll find support and hold around those levels.”
Another element capable of restoring momentum to the market: the degraded weather conditions in the northern hemisphere.
In Europe, a mass of cold air from the Arctic brought temperatures down several degrees below seasonal averages.
In the United States, a cold front will sweep through much of the east of the country, with the thermometer stuck below zero in Cleveland, Chicago or Indianapolis.
Added to the technical rebound and the increase in energy consumption related to cold weather was the closure of the Keystone pipeline, which ordinarily carries about 600,000 barrels from Canada to the United States.
On Sunday, the operator of the pipeline, TC Energy, indicated that it could not, for the time being, give a timetable for the return to service of the installation, victim of a leak in Kansas, and arrested since Wednesday.
The market continues to assess the effects, limited as they stand, of the implementation of the price cap mechanism for Russian oil delivered to destinations other than Europe.
According to the firm Eurasia Group, the blockage at the entrance to the Bosphorus Strait, which had paralyzed many tankers loaded with Russian oil for a week, “seems to be resolved”.
The Turkish authorities, who intended to let only insured ships pass even in the event of a violation of the cap, “allow entry without restriction” now, according to Eurasia Group.
Asked by AFP, the International Group of P & I Clubs, which brings together insurers covering around 90% of the needs of the black gold transport market, did not respond immediately.