Oil ends the week on a small drop

Brent falls below the threshold of 43 dollars, down 0.53%, and WTI drops below 41 dollars, dropping 0.20%.

Oil prices fell on Friday under the weight of doubts about demand and pending the next meeting of OPEC + ministers on Monday, as the pace of the Covid-19 pandemic accelerates.

A barrel of North Sea Brent for December delivery ended at $ 42.93 in London, down 0.53% or 23 cents from Thursday’s close.

In New York, WTI’s US barrel for November fell 0.20% or 8 cents to $ 40.88.

The day before, the two benchmark contracts had already fallen but had limited their losses, helped by a larger than expected decline in crude stocks in the United States.

Friday, the feeling of gloom about the demand for black gold took over because “the second wave of the pandemic is here” justified Paola Rodriguez-Masiu, analyst of Rystad.

“The world is at a stage where new curfews are being put in place, which limits traffic and consequently fuel consumption,” she added.

This is the case in France where a night curfew will be applied in the Paris region and in eight metropolises from Saturday.

On the scale of the European continent, the evolution of the pandemic is considered “very worrying” by the European branch of the World Health Organization (WHO).

“This feeling is reinforced by the fact that the laggards of Opec + made little progress last month to compensate for the overproduction of the previous months”, noted Stephen Brennock, of PVM.

Members of the Organization of the Petroleum Exporting Countries (OPEC) and their allies are supposed to limit their production of crude oil in order to adapt the level of supply as close as possible to that of demand, more or less seriously. depending on the country.

The ministers of these twenty-three countries are meeting on Monday, as every month since the start of the Covid-19 crisis, to assess these data and the market situation.

If analysts rule out for the moment an evolution of their short-term strategy, they wonder about the next step of reduction of the cuts planned for the 1is next January, judging for some to be hasty given the slow recovery in demand.

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