Oil prices are continuing their decline on Thursday, after falling from the day before due to fears related to demand and the considerable increase in petrol stocks in the United States.
Around 9:05 am GMT (11:05 am in Paris), the Brent of the Brent of the North Sea, for delivery in December, lost 1.14% to 84.83 dollars. Its American equivalent, a barrel of West Texas Intermediate (WTI), for delivery in November, fell 1.16% to 83.24 dollars. On Wednesday, the Brent dropped by almost 6% and the WTI 5% on the session. Since their last heights reached last week, the two world references of black gold have unscrewed by more than 12%.
Lowest imports in 25 years in the United States
The drop in prices is partly due to the weekly “data” data “of the American Energy Information Agency (EIA) on petrol demand in the United States published on Wednesday, says Stephen Innes, analyst for Spi am. The EIA report has highlighted the lowest volume of fuel deliveries to the United States for 25 years for this time of the year. Fuel stocks increased by 6.5 million barrels during the week completed on September 29. “The accumulation of petrol stocks has repercussions on the gross markets, in a context of concern about a possible recession in 2024 due to the increase in interest rates,” explains Stephen Innes. “The fears concerning demand (…) suddenly prevail over the supply deficit”, which has dominated the feeling of the market for several weeks, “said Neil Wilson, an analyst of Finalto.
“Currently, economic gloom is at the heart of concerns and is the main engine of prices,” confirms Tamas Varga, from PVM Energy. The rise in courses “started at the beginning of July was suddenly interrupted last week, even if Saudi Arabia and Russia show no sign of intention to return to their production policy,” notes the analyst . Saudi Arabia as Russia confirmed Wednesday the continuation of their production and export reductions until the end of the year, Moscow specifying, however, that an analysis would be carried out in November to determine if it is appropriate to decrease or increase its cut.