Oil prices finished higher on Friday, but their momentum was limited by the announcement of the extension of the closure of the pipeline North Streamwhich generated fears for the European economy and the demand for crude oil.
The price of North Sea Brent for delivery in October gained 0.71%, closing at 93.02 dollars in London, while in New York the barrel of American West Texas Intermediate (WTI), also for October delivery, rose 0.30% to $86.87.
The Petroleum opened sharply higher this Friday. Brent rose as much as 3.20% due mainly to the deadlock in nuclear talks with Iran, according to analyst John Kilduff of Again Capital.
The United States estimated this Thursday that the response of Iran to a text submitted by the European Union to relaunch the agreement “is not constructive”.
The market was further boosted by the proximity of Monday’s meeting of the Organization of the Petroleum Exporting Countries (OPEC) and its allies in the OPEC+ agreement.
But the advance in prices at the beginning of the session was stifled by the announcement of the extension of the shutdown of the Nord Stream gas pipeline, which provides most of the gas in Russian that arrives in Europe.
Deliveries were initially to resume on Saturday after three days of maintenance work, but the group Gazprom justified the extension by the need to repair a faulty turbine.
The market fears that the worsening energy crisis in Europe cause a further increase in natural gas prices, already close to their records, “which will slow down the industry and could cause a recession in Europe,” according to Andy Lipow of Lipow Oil Associates.
This apprehension, combined with the recent wave of new lockdowns for Covid-19 in China, it casts the shadow of a recession in the economy and a depression in oil demand, according to the analyst.
The Dutch TTF, the benchmark for the European natural gas market, closed before the announcement of Gazprom with a drop of more than 12%.
rrg
