Oil runs out of steam, Brent falls below $80

(New York) Oil prices ended lower on Tuesday, in a market still more concerned about the health of demand than about possible disruptions in supply, even if signs of firmness appear.


The price of a barrel of Brent from the North Sea for delivery in March lost 0.63%, closing at $79.55.

The price of a barrel of American West Texas Intermediate (WTI) of the same maturity fell 0.52%, to $74.37.

After closing above the symbolic threshold of 80 dollars for the first time in almost a month, Brent was unable to hold the position on Wednesday.

“Oil remains in a consolidation phase,” commented Craig Erlam of Oanda in a note, “lack of clarity on the economy, interest rates, OPEC + (Organization of the Petroleum Exporting Countries and its allies in the OPEC+ agreement) and the Middle East.

“The market could remain choppy until we have more visibility,” warns the analyst.

“It seems that the operators do not want to let the courses [du WTI] go too much beyond 70 [dollars le baril] and too much below 70,” added Stephen Schork, of Schork Group. “So as long as there is no disruption” in supplies, i.e. “real disruption or peace [entre Israël et le Hamas], we will stay within these margins. »

On Tuesday, black gold was also kept under pressure by the surge in the dollar, at its highest level in almost six weeks against the euro.

Another obstacle, the resumption of production on the al-Charara field, one of the largest in Libya, announced on Sunday.

Extraction was suspended on this site after demonstrators took over in early January to protest against the high price of gasoline and the lack of jobs.

According to a video posted by representatives of the movement, from the Oubari region (southwest), the president of the National Oil Company (NOC), Farhat Bengdara, pledged to satisfy their demands.

On Tuesday, Libyan Minister of Oil and Gas, Mohamed Aoun, told Bloomberg that national crude production had risen to 1.2 million barrels per day, its level before the closure of al -Charara.

Despite the tensions in the Middle East, “a lot of speculators are positioned on the downside”, underlined Stephen Schork, which keeps prices under pressure.

But whether on Brent or WTI, prices are in “backwardation”, which means that oil to be delivered soon is more expensive than crude for more distant maturities.

“This is a very good sign in terms of fundamentals,” recognizes Stephen Schork, “which suggests that demand is more solid than speculators want to admit.” “I prefer to play upwards rather than downwards. »


source site-55