London (awp/afp) – Oil prices stabilized at a high level on Monday, the end of anti-Covid 19 measures in China presaging sustained demand as supply is weighed down by the European embargo on production Russian.
Around 09:35 GMT (11:35 CET), a barrel of Brent from the North Sea for August delivery rose 0.34% to 120.13 dollars.
The barrel of American West Texas Intermediate (WTI) for delivery in July took 0.38% to 119.28 dollars, after rising to 120.99 dollars, a high since the beginning of March.
Beijing’s announcement of the end of containment on Sunday ended a turbulent week for black gold: a gradual embargo by the European Union on Russian oil on Monday then a slight increase in the production quotas of the Organization of Exporting Countries of oil and its allies (OPEC+) on Thursday.
“Energy demand should rebound in China with the lifting of health restrictions in Beijing, and while the economy should not be expected to improve dramatically, the post-lockdown recovery should fuel concerns about oil supply. “, explains Susannah Streeter, analyst at Hargreaves Lansdown.
“Despite the adjustment of the (OPEC+) cartel, global demand far exceeds supply due to European measures against Russian oil”, commented Victoria Scholar, analyst at Interactive investor.
OPEC +, which had increased its production targets in recent months by 432,000 barrels per day, announced Thursday an increase of 648,000 barrels per day.
But many market watchers point out that the 23 countries in the OPEC+ deal are already struggling to meet their targets.
In a sign of strong demand, Saudi oil giant Saudi Aramco raised selling prices for its Asian customers on Sunday.
Since the start of the year, the surge in demand with the end of Covid-19 restrictions around the world and the market disruption caused by the war in Ukraine have sent the price of Brent soaring by 55 % and that of WTI by 58%.
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