Oil catches its breath despite China

Oil prices fell a little on Monday, the new measures to support the economy in China not enough to fuel the jump in prices on Friday.

Around 10:30 a.m. GMT (11:30 a.m. in Paris), a barrel of Brent from the North Sea for delivery in January 2023 yielded 1.07% to 94.96 dollars.

A barrel of US West Texas Intermediate (WTI) for December delivery fell 1.24% to 87.86 dollars.

After benefiting from China’s announcements on Friday on a possible easing of anti-Covid measures which are weighing on demand, oil, unlike the rest of the market, did not rise at the start of the week after a stimulus plan for the Chinese real estate sector. .

For black gold, confinements remain the main concern since they limit movement and demand.

“There are policy changes, but China also records the highest number of daily contaminations since April and Guangzhou (the fourth largest city in China, editor’s note) has reinforced its containment measures”, recall analysts from ING .

In this context, the rebound in prices did not last because “actions weigh more than promises”, summarizes Stephen Innes, analyst at SPI AM.

Investors were also waiting for the monthly report from the Organization of the Petroleum Exporting Countries (OPEC) on the market.

In its long-term report published at the end of October, OPEC estimated that world demand would increase over the next fifteen years.

But the Organization was on the other hand more pessimistic on the demand for 2022 and 2023.

OPEC’s monthly forecast comes ahead of that of the International Energy Agency (IEA) due Tuesday.

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