(London) Crude oil prices fell sharply on Wednesday, losing more than 5%, after the publication by the American Energy Information Agency (EIA) of a new increase in oil stocks gross which thus beat their record level.
Posted on 24 June 2020 at 8 o'clock35 Updated to 11 h 27
France Media Agency
Towards 11 h 30, the American barrel of WTI for delivery in August yielded 5, 18% compared to the closing of the day before, quoting 38, 28 dollars on its new market Yorker.
That of Brent from the North Sea for delivery in the same month was worth 40, 45 Dollars in London, down 5, 11%.
The two reference prices had touched the eve of the highest for more than three months.
Already falling during the day, “WTI and Brent prices were rocked following the EIA report,” said David Madden, analyst at CMC Markets.
According to the agency's weekly report, oil reserves in the United States increased last week by 1.4 million barrels (MB) to settle at 540, 7 MB, a new record.
This is their third consecutive increase in a market still concerned by weak demand and the impact of the COVID pandemic – 19 on consumption.
This increase, yet close to analysts' expectations, is likely to “show that the situation of excess supply in the United States is still not resolved”, had judged earlier today Jasper Lawler, LCG.
In addition, concerns about a second wave of COVID contaminations – 19 – 19 still looming on the oil markets as a serious threat to a solid recovery in demand.
The International Monetary Fund (IMF) announced on Wednesday an even darker outlook than expected for the world economy at the time of the COVID epidemic – 19 is experiencing a “worrying” surge in the United States.
“Even if the data indicates the beginning of a recovery in economic activity, it has still not got rid of the discomfort caused by the pandemic,” explained Stephen Brennock, of PVM.
Black gold producing countries are not spared: the GDP of the leader of the Organization of the Petroleum Exporting Countries (OPEC), Saudi Arabia, is going according to IMF estimates to contract 6.8% this year, its worst performance in years 1980.
The deterioration was rapid: in April, the institution predicted a contraction of only 2.3% for the largest economy in the Middle East.
