EL NUEVO DIARIO, NUEVA YORK.-The price of Texas Intermediate Oil (WTI) fell 4.2% on Tuesday, in its first session of the year, and closed at $76.93 a barrel as investors fear the new wave of covid-19 in China, the world’s largest importer of crude oil, will affect oil demand.
At close of business in New York, WTI futures contracts for delivery in February added $1.86 compared to the previous day’s close.
Investors initially welcomed China’s lifting of its tough pandemic restrictions, as it would revitalize the economy and boost demand for crude in the country.
But with covid-19 cases on the rise, investors worry that this will eventually negatively affect consumption.
Today, the news out of China was that “the country’s Purchasing Managers Index (PMI) fell in December at the fastest pace in nearly three years,” said Brian Steinkamp, commodity analyst at Schneider Electric , in a statement reported by specialized media Market Watch.
China’s official manufacturing PMI fell more-than-expected in December to 47.0, its lowest level since February 2020.
“December China survey data was uniformly downbeat. The decline in the official services PMI points to a decline in oil demand,” said Caroline Bain, chief commodity economist at Capital Economics, in remarks reported by Market Watch.
On the other hand, natural gas futures for February lost $0.48 to $3.98 and gasoline futures due the same month lost $0.11 a gallon to $2.36.
