The price of Texas intermediate oil (WTI) fell 0.4% this Monday, to US$79.73 a barrel, below the US$80 barrier, given the growing fears about the increase in covid cases in China – the world’s largest consumer of crude oil- and the possible increase in the production of black gold by the Organization of Petroleum Exporting Countries and allies (OPEC+).
At the end of trading on the New York Mercantile Exchange (Nymex), WTI futures contracts for December delivery, which ends today, were down $0.35 from the previous day’s close.
China, which applies a severe “zero tolerance” policy towards the new coronavirus, has suffered waves of outbreaks in recent months attributed to the omicron variant that have caused record numbers of infections not seen since the start of the pandemic in the first half. of 2020.
The Wall Street Journal reported today that Saudi Arabia and other OPEC+ members are discussing a possible production increase for their December meeting.
However, crude quickly pared falls after Saudi Arabia’s energy minister denied the report.
On the other hand, natural gas futures contracts for December added four cents to US$6.77, and gasoline futures due the same month rose one cent to US$2.43 a gallon.