Oil prices continue to decline on Thursday with weak trading activity in the last days of the year.
Investors’ optimism connected with expectations of increase of demand for oil after lifting of quarantine restrictions in China was replaced with concerns of new wave of COVID-19 disease in the world.
Earlier Beijing announced its intention to soften the epidemiological requirements for those arriving in the country from January 8. In addition, the Chinese authorities will resume issuing documents for tourists wishing to travel abroad. The U.S. and Italy have already announced additional requirements for passengers arriving from China.
The cost of February futures on Brent oil at London’s ICE Futures Exchange was $83.14 per barrel by 7:15 a.m. KSC on Thursday, down $0.12 (0.14%) from the close of the previous session. Those contracts fell $1.07 (1.3%) to $83.26 a barrel at the close of trading on Wednesday.
The price of WTI futures for February at electronic trades of NYMEX fell by $0.28 (0.35%) by that time to $78.68 per barrel. By the close of previous trading, those contracts had fallen $0.57 (0.7%) to $78.96 a barrel.
“China’s rejection of travel restrictions could trigger a new global wave of COVID-19,” said John Driscoll, director of JTD Energy Services Pte. in Singapore, cited by Bloomberg. – This, in turn, may weaken the demand for oil and lead to lower prices.
On Thursday, traders will focus on the U.S. energy inventory data for the previous week to be published by the country’s Department of Energy at 19:00 MSK.
The American Petroleum Institute (API) report showed that U.S. oil inventories fell by 1.3 million barrels in the week ended December 23, after falling by 3.07 million barrels a week earlier.
