Oil slows down after US stocks

Oil slows down after US stocks
Oil slows down after US stocks

Shortly before noon, Brent posted a drop of 0.27% to 62.99 dollars and WTI a loss of 0.50%, to 59.47 dollars.

Oil prices hesitated Thursday the day after a small increase, concerned about the evolution of the Covid-19 pandemic and a surprise increase in gasoline stocks in the United States last week.

At around 9:40 a.m. GMT (11:40 a.m. CET), a barrel of Brent from the North Sea for June delivery was worth $ 62.99 in London, down 0.27%.

In New York, the US barrel of WTI for the month of May lost 0.50% to 59.47 dollars.

Since its last peaks reached exactly a month ago, on March 8, “black gold has lost its momentum” notes Carlo Alberto De Casa, analyst at Activtrades.

“Investors believe that oil prices have gone too quickly too high”, adds Naeem Aslam, of Avatrade and the market remains “concerned about the new wave of the Covid-19 pandemic which is weakening the emerging global (economic) recovery and demand for fuel, ”adds Avtar Sandu of Phillip Futures.

A third wave of Covid-19 is indeed hitting several continents and bringing its share of restrictions on the movement of goods and people, which are slowing down the consumption of crude.

At the same time, the human toll continues to increase: the pandemic has killed more than 2.87 million people worldwide, according to the latest count established by AFP from official sources on Wednesday in the middle of the day.

Investors also digested Thursday the latest data from the US Energy Information Agency (EIA) released the day before indicating that commercial crude oil reserves in the United States had declined for the second week in a row, but that those gasoline had risen sharply.

This last point, which has foiled the expectations of analysts, “raise fears that the increase in Covid-19 cases will further harm the outlook for demand,” continued Mr. Sandu.

To cope with this, the members of the Organization of the Petroleum Exporting Countries (OPEC) and their allies via the OPEC + agreement are still trying to adapt their level of supply, by only gradually increasing their oil production. black gold.

After their last ministerial summit last Thursday, the cartel agreed to meet again at the end of the month, on April 28.

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