(New York) Oil prices rebounded on Tuesday, boosted by uncertainty surrounding the strategy of the Organization of the Petroleum Exporting Countries (OPEC), and the approach of entry into force of the European embargo on Russian crude oil.
The price of a barrel of Brent from the North Sea, for delivery in January, gained 1.04%, to close at 88.36 dollars.
The price of US West Texas Intermediate (WTI), also expiring in January, rose 1.13% to $80.95.
“Crude prices continue to rebound after Saudi denial yesterday of a possible OPEC + production hike”, that is OPEC and its allies of the OPEC + agreement, commented Edward Moya, of Oanda, in a note.
Saudi Energy Minister Abdelaziz bin Salman on Monday refuted the information of the wall street journal reporting discussions around a possible increase in volumes produced by the cartel, up to 500,000 barrels per day.
“The fact that oil prices fell $10 last week makes me think OPEC is going to leave production unchanged” and not raise it at its next meeting on Dec. 4, Lipow’s Andy Lipow said. Oil Associates.
“It wouldn’t surprise me either if they try to reduce their production again,” continues the analyst. The group had announced, at the beginning of October, a drop in its volumes of two million barrels per day from November.
“The recent price drop has been excessive, in our view,” Commerzbank analysts argued in a note. “The market should tighten significantly with the OPEC+ production cut (decided in October) and the entry into force of the embargo against Russia. »
According to wall street journalthe United States and its European partners hope to reach an agreement as early as Wednesday to define the ceiling price applied to Russian oil exports.
This mechanism, promoted by the United States, would allow the Russians to continue to export their black gold and thus escape the European embargo, as long as they do not sell it above a certain price, around 60 dollars according to wall street journal.
Operators are “waiting to see where this price will go and what effect it will have on the market”, according to Andy Lipow.
On the eve of the publication of the state of American stocks in the United States, analysts are counting on a further significant contraction, which would provide additional support for prices.
“It wouldn’t be much of a surprise because the refiners are done with the maintenance period and the margins on gasoline and diesel are so good that they’re going to want to run at full capacity,” said Andy Lipow.