Oil closes lower, reflecting Covid in China and the price of Russian oil

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Oil futures contracts closed lower on Thursday, the 24th, pressured by the cases of covid-19 in China and with discussions about the Russian oil ceiling on the radar. The movement occurred despite the devaluation of the dollar against rivals, since the commodity is quoted in the US currency.

On the Intercontinental Exchange (ICE), Brent crude for January 2023 fell 0.08% ($0.07) to settle at $85.34 a barrel. In the electronic trading session of the New York Mercantile Exchange (Nymex), at 3:29 pm (Brasília time), a barrel with delivery for the same month operated in stability, at US$ 77.94.

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According to Victoria Scholar, an analyst at Interactive Investor, oil prices are operating lower “after the G7 proposed a price cap for Russian oil that is higher than current market prices, helping to alleviate concerns about supply. restrictive in the market”. According to a report by Bloombergthe price discussed is between US$ 65 and US$ 70 a barrel.

According to Rabobank’s analysis, several countries (including Spain, France and Poland) think that, under current proposals, the price cap is too high to be useful.

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This Thursday, the spokesman for the Russian government, Dmitry Peskov, highlighted that the country’s president, Vladimir Putin, does not intend to supply oil and gas to countries that support the oil price ceiling, which should be done by the G7, which would hurt the supply side.

According to Rabobank’s analysis, the main factors related to today’s Brent volatility, in addition to the Russian oil price ceiling, appear to be concerns about Chinese demand, as the covid-19 spreads rapidly in the country and the lockdowns are tightened. increasingly common.

This Thursday, the country has been expanding lockdowns as the number of cases of the disease reached a new daily record. Across the country, China recorded a record 31,444 registered in the last 24 hours in the early hours of Thursday, according to the National Health Commission.

Source: CNN Brasil

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