Oil futures contracts closed lower, pressured by data from commodity inventories in the United States. The easing of China, one of the main importers of oil, and the effects of the price cap on Russian oil were also on investors’ radar.
On the New York Mercantile Exchange (Nymex), WTI oil for January 2023 closed down 3.02% (US$ 2.24), at US$ 72.01 a barrel, while Brent for February of the same year traded on the Intercontinental Exchange (ICE) closed down 2.75% (US$ 2.18), at US$ 77.17 a barrel, the lowest mark since January of this year.
This Wednesday, the Department of Energy (DoE, its acronym in English) of the United States announced a drop in stocks of the commodity greater than expected by the market, despite registering an increase in average daily production.
According to an analysis by Capital Economics, the increase in inventories should cause the price to fall further, “which will eventually lead to lower refinery activity and a drop in oil demand”.
Still, Capital Economics points out that the market’s focus remains on the first signs of the price ceiling for Russian oil.
According to TD Securities, the market “is looking at the news that China will gradually lift its very restrictive Covid policies”.
Earlier, China’s National Health Commission (NHC) published that the country will again ease part of the mobility restriction measures, which may increase demand for oil.
TD Securities adds that the energy market appears to be at increasing risk from sharp declines in demand and the reluctance of the Organization of Petroleum Exporting Countries (OPEC) to increase its quota cuts of 2 million barrels per day which, according to the report sent to customers, could be revisited in the “not too distant future”.
“While the market is correct to show concerns around demand, it may be too optimistic about the assumption that structural problems on the supply side have materially eased,” he points out.
Source: CNN Brasil
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