The oil price intermediate of Texas (WTI) fell 1.9% this Friday, to $80.08 a barrel, after having fallen below the $80 barrier during the day, given the growing fears of a contraction in the economy and due to the increase in covid cases in China, the world’s largest consumer of crude oil.
Upon completion of operations in the New York Mercantile Exchange (nymex), WTI futures contracts for delivery in December fell $1.56 compared to the previous day’s close and in the weekly set, black gold has dropped 10%, chaining two consecutive weeks down.
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The firm’s analyst oanda, Craig Erlam assured that “oil prices continue to decline in the context of increasingly bleak economic prospects and the increase in cases of covid in Chinawhich could lead to more restrictions and lockdowns, and this threatens demand in the world’s second-largest economy,”
The US benchmark crude fell 4.6% on Thursday, reaching its lowest level since the end of September and despite the fact that the OPEC oil-producing countries decided last October to cut their production by two million barrels per day to try to raise its price, at a time whenIt stood at $87 a barrel.
It is also influencing the insistence of local representatives of the US Federal Reserve (Fed) in their belief that we must keep raising interest rates to continue trying to cool the economy and, ultimately, contract inflation.
Yesterday, the president of the Reserve Federal of st louis, James Bullardconsidered one of the greatest defenders of continuing to raise interest rates, assured that the Fed’s measures have had “limited” effects and pointed out that the types They could go up to a minimum of 5 and 5.25% and a maximum of 7%, when they are currently in a range of between 3.75 and 4%, the highest level since 2017.
“Without a doubt, the market will focus its attention to supply OPEC+ in the coming weeks as it remains to be seen how much daily production will actually decline after the official announcement of a 2 million barrel reduction,” he said. Barbara Lambrechtof the signature commerzbankcited by the Market Watch website.
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On the other hand, natural gas futures contracts for December fell 6 cents to $6.3, and gasoline futures due the same month fell 3 cents to $2.42 a gallon.
