The barrel of WTI closed on a fall of 8.1% to 18.27 dollars while that of Brent ended on an increase of 0.90% to 28.08 dollars.
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The price of a barrel of oil quoted in New York fell 8.1% on Friday to end at its lowest since January 2002 as it becomes increasingly difficult to store crude in the United States.
West Texas Intermediate barrel for May delivery was $ 18.27 a barrel, down $ 1.60 from Thursday’s close. Over the week, it plunged 19.7%.
An encouraging sign, however: the barrel of WTI for delivery in June, which will become the benchmark from Wednesday, fell only 2%, to end at 25.07 dollars.
A barrel of Brent North Sea crude for June delivery, benchmark for London, rose 0.90% or 26 cents to 28.08 dollars. Over the week, it lost 10.8%.
WTI’s barrel contract for delivery in May will soon expire, meaning that those who own it must find physical buyers. But the stocks have already swelled enormously in the United States in recent weeks and they have to sell their prices.
“The production cuts promised by OPEC (the Organization of the Petroleum Exporting Countries) and its allies must be implemented and the drop in production in the United States is not done quickly enough given the abundance black gold on the market, ”says Phil Flynn of Price Futures Group.
US production is certainly declining, according to the latest figures from the American Energy Information Agency (EIA) published on Wednesday, but slower than demand, causing an explosion in stocks which threaten to overflow.
The International Energy Agency (IEA) has warned this week that global oil demand is expected to undergo a “historic” collapse of 9.3 million barrels per day (mbd) this year, and fall again in April to its lowest level in a quarter of a century.
The spread of the Covid-19 pandemic and population containment measures around the world have grounded many planes, drastically reduced car journeys and paralyzed many factories.
China came to illustrate this harsh observation earlier today: its economy experienced a decline for the first time in its history in the 1st quarter, with a decline of 6.8% over one year.
However, “if we look at the prices of contracts that expire later in the year, prices are more encouraging because investors are betting on a recovery of the American economy which should allow demand to recover,” said Mr. Flynn.
Donald Trump notably unveiled a plan on Thursday to “restart America” in three stages, and to revive the world’s largest economy as quickly as possible.
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