Oil prices on the New York fuel exchange are falling in response to China’s “zero Covid” policy. This way of fighting the coronavirus epidemic questions the energy demand of this largest oil importer, brokers inform.
A barrel of West Texas Intermediate oil shipped on December 12 costs $ 85.33 on NYMEX in New York, 0.58 percent lower, after a 3.5 percent drop on Wednesday.
Brent ICE deliveries for January 2023 are valued at USD 92.24 per barrel, 0.41% lower.
Investors are worried or the “zero Covid” strategy supported by the Chinese authorities in the fight against the coronavirus epidemic. This results in more blocks are introduced into the economy and this reduces the demand for energy.
Oil traders were wrong, however, when they expected the Chinese economy to reopen – says Stephen Innes, managing partner of SPI Asset Management.
The deterioration prospects for China bring the narrative of a possible recession to the fore – He adds.
Meanwhile in the United States they are on the rise oil stocks and are currently at their highest level since July 2021. These stocks increased by 3.93 million barrels last week, or 0.9%. at 440.76 million barrels, the United States Department of Energy (DoE) reported.
Stocks of gasoline have decreased however, during this period of 900 thousand. barrels, or 0.44 percent. up to 205.73 million barrels.
The reserves of distillate fuels, including heating oil, decreased by 521 thousand tons. barrels, or 0.49 percent. to 106.26 million barrels, the DoE reported.
