The course of the american oil renouait with his demons and found himself Monday, to the point of letting go of almost 30%, and weighted down by an abundant supply and a crude oil storage limits soon to be reached, on a background of pandemic coronavirus.
The price of a barrel of WTI creaked even as he remained on four consecutive sessions of increases, after a collapse in the beginning of last week.
Last Monday, he had a meeting unprecedented in the history of the oil market, the previous contract for delivery in the month of may, closing at -37,63 dollars per barrel.
But if on Monday he was still far away from the abyss, it was accused no less than a severe dip.
To 14: 40 GMT (16H40 to Paris), the barrel american WTI for delivery in June fell 26,21% compared to Friday’s close, to 12.50 dollars, after touching a minimum 11,88 dollars.
A barrel of Brent North sea for June was 19,62 dollars in London, down 8,49%, after having touched earlier in the session at $ 19.50.
This orientation of the market reflects concerns about “the levels of storage of crude oil, which increases” and approaching their limits, as well as on the cuts to come from the producing countries, “that does not meet the real needs of the market,” said Bjornar Tonhaugen, analyst, Rystad Energy.
The oil-producing countries met at the Organization of the petroleum exporting countries (Opec) and their partners agreed in April to reduce of about ten million barrels per day production from the month of may, but the lack of demand caused by the pandemic Covid-19 could represent a volume more than two times higher.
As a result, the reserves of black gold-fill at speed and could reach their maximum within a few weeks according to several analysts, a chain reaction that weighs even more on the price of crude oil.
In this context very unfavourable prices, the price of oil “no longer really need a trigger to plunge,” recalls Craig Erlam, of Oanda.
The analyst points out the return on Monday of a high volatility, a sign of anxiety of the investors, “while she seemed to be somewhat calmed down by the end of last week”.
“If demand does not return in may, it is likely that prices are plunging again into the negative with the approach of the next date of delivery”, for its part, believed Hussein Sayed, an analyst for FXTM.
However, the recovery of activity is shaping up for the less complex, the european countries, addressing the crucial step of the déconfinement in a haphazard manner and sometimes in controversy.
Across the Atlantic, the us secretary of the Treasury Steven Mnuchin said on Sunday that the us administration was considering providing loans to oil companies in order to save this industry jeopardized by the low prices.
Lend money to the companies of the energy sector is an option “that we look up close”, has he said on Fox News.
The president, Donald Trump had announced on Tuesday have asked the administration to develop a plan for emergency aid to the industry of gas and oil.