(New York) Oil prices, which had started the day in decline, still worried by China’s strict zero-COVID-19 policy, ended higher on Thursday, reassured by the slowdown in US inflation.
Posted at 3:54 p.m.
A barrel of Brent from the North Sea for delivery in January 2023 advanced 1.10% to 93.67 dollars.
A barrel of US West Texas Intermediate (WTI) for December delivery rose 0.74% to $86.47.
Like all financial markets, the oil market reacted positively to the news of easing inflation in the United States, which raised hopes that the Federal Reserve (Fed) will slow rate hikes in the medium term, which would revive demand. in general.
“Prices took a turn in the green in response to the inflation report,” summarized John Kilduff of Again Capital.
“Oil got caught” in this enthusiasm “like the rest of the markets”, as the New York Stock Exchange soared and the dollar melted.
Inflation slowed in the United States in October, more than expected, to 7.7% year on year according to the CPI index, against 8.2% in September, falling to its lowest level since January 2022.
“The conclusion that we draw from this report is that the Fed will ease off on its monetary tightening, which is in line with greater energy consumption,” John told AFP. Kilduff recalling that for almost a week, prices have been falling due to the health situation in China.
In China, an epidemic rebound in the large city of Canton (south) continues to fuel investors’ fears of new confinements which would weigh on Chinese travel, and therefore on demand from the world’s largest importer of crude.
Sign of the lack of appetite for black gold, US reserves increased by 3.9 million barrels in the week ended November 4, according to data published by the US Energy Information Agency (EIA). ).