WTI crude futures fell more than 1% to nearly $71 as investors eased concerns over Canadian pipeline closures.
At 23:20 Thai time, contract for West Texas crude oil (WTI) for January delivery. That traded on the NYMEX, down $0.77, or 1.07%, at $71.24 a barrel.
WTI oil price surged more than 4% to above $75 initially after Canada’s TC Energy announced it was shutting down its Keystone pipeline due to a leak.
Keystone is an oil pipeline from Alberta in Canada to the Gulf Coast and Midwest of the United States.
However, oil prices subsequently plummeted. After the expert said The closure of the pipeline will not have much effect on the amount of oil in the market.
Also, oil prices were initially buoyed by hopes that China would reopen the country. After the measures to control the COVID-19 will be relaxed. continuously that the demand for oil will increase
Shanghai authorities have announced the abolition of the requirement for citizens to submit COVID-19 test results. Be negative before entering the restaurant or entertainment venue It will come into effect tomorrow.
Shanghai, the center of Chinese trade It has been subject to numerous blockades in recent months. As a result, economic activity slowed down. and causing people to protest COVID-19 containment measures
Oil prices have also benefited from congestion by Russian crude tankers from Black Sea ports to the Mediterranean. which caused the delay in the transportation of oil After the implementation of measures to limit the price of Russian crude oil from the G7 and the European Union (EU).
At the same time, investors sent speculative buying to the market. After Oil Prices Crashed Yesterday Amid Worries About A Recession Including Worries Over A Slowdown In US Fuel Demand. After last week US gasoline and refined inventories rose more than expected.
