oil prices dropped sharply, this Monday, November 14, after the Organization of Petroleum Exporting Countries (Opec) reduced forecasts for demand for crude oil, while Covid-19 cases have skyrocketed in China.
(See: Ecopetrol says exit from MSCI does not reflect its financial performance).
the barrel of Brent North Sea, for January delivery, lost 2.96% to $93.14 in London. Meanwhile, the West Texas Intermediate (WTI), for December, it gave up 3.47% and fell to $85.87 in New York.
“This weakness is due to the reduction in demand forecasts by Opec and nervousness over the continuation of an offensive stance by the Federal Reserve (Fed).on interest rates, Edward Moya of Oanda said in a note.
OPEC continues to anticipate a significant increase in demand in 2023, as in 2022, but in both cases it lowered its estimates by 100,000 barrels per day.
(See: Differences that ‘separate’ Petro and Lula for oil exploitation).
The group had already lowered its forecasts several times, most recently in October. And, this time, he pointed out that the adjustment is attributable in particular to the sanitary restrictions in China.
The National Health Commission (NHC) of China reported 14,409 coronavirus cases on Monday, a record level since April.
(See: Why Petro Says the World “Finds Itself” Without Oil and Coal).
The main focus is in the province of guangdong and its capital, guangzhu, the fourth largest city in China and subject to restrictions for several days.
AFP
