Sunday, April 18

Oil takes a break on Thursday

The two contracts hesitated a lot during the session. (Photo: 123RF)

After a march forward fueled by optimism about the global economic recovery and the disruption of production in Texas, oil prices paused on Thursday as markets wanted more indication of OPEC + intentions.

A barrel of North Sea Brent for April delivery fell 0.24% from Wednesday’s close, ending at $ 66.88 in London.

The decline was larger for the US barrel of WTI for the same month, which lost 0.49% to 63.53 dollars in New York.

However, the two contracts hesitated a lot during the session, alternating between rise and fall: at one point, they rose to reach levels more seen since January 8, at respectively 67.70 dollars and 63.73 dollars per barrel.

“After a strong start at the beginning of the week, crude prices are taking a break,” said Robbie Fraser, at Schneider Electric, adding that investors’ eyes were now on OPEC +, which is trying to determine whether it continues or not to curb exports of black gold.

“Saudi Arabia seems to want to end its unilateral decision to take 1 million barrels of oil a day off the market, but uncertainties remain over how the organization (OPEC +) as such will go about it. to get production back to pre-pandemic levels, ”said Robbie Fraser.

“Everyone is now waiting” for the meeting of the Organization of the Petroleum Exporting Countries (OPEC) and their OPEC + allies to be held next week, March 4, agrees Neil Wilson of Markets.com.

This high mass could lead, according to the expert, to a “relaxation of supply constraints” to which the cartel is constrained.

Before Thursday’s change of course, black gold prices were on the rise. A push fueled by the deployment of vaccination campaigns and the upcoming variety of vaccines against COVID-19, information likely to accelerate the reopening of economies.

The cold wave that affected the American state of Texas in the United States, a major producer of hydrocarbons, also contributed to pulling up prices because it caused the paralysis of oil and electricity infrastructure.



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