The company’s oil price is expected to remain stable on the last working day of the year amid low trading activity, ending the fourth quarter in negative territory, Interfax-Ukraine news agency Interfax reported on Thursday (Dec 2).
Fears that a sharp lifting of quarantine restrictions in China, which has already led to an increase in the incidence of COVID-19, will weaken the country’s economy and, consequently, the demand for oil, put pressure on the market. In addition, investors do not rule out a new wave of coronavirus infection in the world.
Earlier, the Chinese authorities announced that they would resume issuing documents for tourists wishing to travel abroad. The United States and Italy have already announced additional requirements for passengers arriving from China.
Data from the U.S. Department of Energy, released on Thursday, showed an unexpected increase in the country’s oil reserves last week. Reserves rose by 718,000 barrels, while analysts polled by Bloomberg agency forecast an average decline of 1.2 million barrels.
Gasoline inventories decreased by 3.1 million barrels and distillates increased by 283,000 barrels.
The value of March futures on Brent crude oil on London’s ICE Futures Exchange by 7:15 am on Friday stands at $83.8 per barrel, which is $0.34 (0.41%) higher than the price at the close of the previous session. Those contracts fell $0.53 (0.6%) to $83.46 a barrel at the close of trading on Thursday.
The price of WTI futures for February increased by $0.33 (0.42%) up to $78.73 per barrel at electronic trades of NYMEX. By the close of previous trading, those contracts had fallen $0.56 (0.7%) to $78.4 a barrel.
“We have another year ahead of us with serious uncertainty, and the oil market will remain highly volatile,” said Oanda chief analyst Craig Erlam, cited by Bloomberg. – The new year promises many surprises and twists and turns.
