The price of black gold has, however, approached 45 dollars, their level at the beginning of March.
The barrel cannot find its cruising speed. That so much hoped for by OPEC and its partners who have despite everything managed to get it out of the eye of the storm at the cost of a historic drop in their production of nearly 10 million barrels per day. This allowed the prices of Brent, Algerian oil benchmark to rebound by more than 28 dollars since April 20, a black day for American oil which had recorded the worst drop in its history to minus 37 dollars. Who would have believed it? This unlikely scenario has however been mentioned by some specialists. Oil prices have not stopped falling since the outbreak of the coronavirus epidemic in China in December before Saudi Arabia and Russia dealt them the final blow through the war of price that opposed them. The Saudis had decided to increase their production to 12 million barrels a day and to sell off their oil after the Russians refused to respond favorably at a summit held on March 6 in Vienna, Austria, to their proposal to cut again the production of the Opep-non Opep alliance, in an already saturated market. They have rebuilt considerable land since. On August 5, Brent even crossed the $ 46 mark and WTI that of $ 43, a first for five months, when the Russians and Saudis briefly camped in their positions as the coronavirus pandemic swept the world before crippling the economy of the planet, pinning air fleets to the ground, forcing companies to close their doors, industrialized countries which import oil worldwide, such as China, to drastically reduce their consumption. Headwinds that slowed the progression of the barrel. In particular, colossal financial efforts have been implemented, the European Union will inject 750 billion euros, to restart the world economic machine in the wake of a gradual deconfinement which is becoming unavoidable. The oil market should theoretically find its account there. Which is not yet the case. A barrel of Brent closed the week which ended on August 7 at 44.66 dollars or 43 cents less than the session the day before. It benefited only briefly, last Wednesday, from the sharp drop in US inventories by crossing the 46 dollars. An indicator that could not yet reassure the state of demand. The United States has once again opened up another breach in the trade tensions front.
“The markets continue to worry about demand, in particular with the resurgence of trade tensions with Canada and China, which could weigh on global growth and therefore energy consumption,” notes Andy Lipow of the Lipow Oil firm. Associates. The fears, aroused by the Covid-19 which has redoubled in ferocity, in the United States, in particular a global producer and large consumer of black gold, on which these tensions have been grafted, remain persistent.