The price of Texas intermediate oil (WTI) fell 5.3% this Wednesday, January 4, and closed at US$72.84 a barrel, its lowest value in more than three weeks. At the end of trading in New York, WTI futures contracts for February delivery added $4.09 compared to the end of their previous trading session.
This fall is explained because the investors They are concerned about the new wave of COVID-19 in China – the world’s largest crude oil importer – and fear it will affect oil demand.
Although investors initially welcomed the fact that China lift its harsh restrictions against the pandemic, as it would revitalize the economy and give wings to the country’s demand for crude oil, with the increase in cases, businessmen fear that this will end up negatively affecting consumption.
Investors are also wary of lower demand due to poor prospects for global economic growth. In addition, data from the Energy Information Administration to be released on Thursday is expected to reveal a weekly increase in crude oil inventories of USA.
On the other hand, futures contracts for natural gas for February they gained US$0.18, up to US$4.17, and those of gasoline with expiration in the same month lost US$0.10 a gallon, up to US$2.25.
Source: Larepublica
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