Oil Recovers The Day After A Dip

Oil prices ended the week on the rise on Friday the day after a nightmarish session where fears around demand and black gold inventory levels brutally punished the optimism that had prevailed in the market since the start of the year. ‘year.

A barrel of North Sea Brent for May delivery ended $ 64.53 in London, up 1.98% or $ 1.25 from Thursday’s close. However, it ends far from the 70 dollars reached at the very beginning of the week.

In New York, WTI’s US barrel for April rose 2.37%, or $ 1.42, to $ 61.42, but was trading over $ 65 on Wednesday.

The day before, the oil market recorded its biggest drop since September, with the two benchmark contracts tumbling around 7%.

Brent and WTI even went so far as to lose more than 9% in session and signed their fifth consecutive session lower.

In question, a batch of new bearish for the crude: American stocks of crude at their highest since the beginning of December, at 500.8 million barrels, gloomy outlook from the International Energy Agency (IEA), which estimates that global oil demand is expected to take two years to return to pre-crisis levels, and above all a halt for the AstraZeneca vaccine in Europe after the reports of possible side effects.

France, Germany, Spain and Italy, however, announced Thursday that AstraZeneca vaccinations would resume, as the European Medicines Agency (EMA) deemed the vaccine “safe and effective”.

To make matters worse, “Commodities are not immune to the threat of accelerating inflation either,” added Lukman Otunuga of FXTM.

But several experts were reassuring on Friday.

 

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