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Oil prices dipped on Wednesday, returning to their highest level in four months as worries about economic growth reduced fuel consumption prospects.
However, badysts said that oil was still well supported by voluntary cuts in supply driven by the sanctions of OPEC producer clubs and the United States against Iran and the United States. Venezuela.
The Brent International crude oil futures were at $ 67.50 per barrel at 02:22 GMT, down 11 cents (0.2%) from their last close. Brent hit $ 68.20 a barrel on Tuesday, its highest level since November 16th.
The WTI (West Texas Intermediate) US futures price was $ 58.83 per barrel, down 20 cents or 0.3% from their latest settlement. WTI hit a high of $ 59.57 a barrel Tuesday, its highest level since Nov. 12.
Analysts said the decline was mainly due to concerns that an economic slowdown could soon reduce fuel consumption.
"Concerns about global growth and lingering fears of supply oversupply are creating headwinds for the commodity," said Lukman Otunuga, badyst at FXTM.
The declines come after crude prices rose by more than a quarter this year, driven by the commitment announced by the Organization of the Petroleum Exporting Countries (OPEC) to retain about 1.2 million barrels per day of supply as well as by the United States. sanctions against Iranian and Venezuelan oil exporters.
"The uncertain supply prospects vis-à-vis Venezuela and Iran, as well as the production restrictions imposed on oil-producing countries, are the main concern of the oil market," said Norbert Ruecker, head of the oil and gas industry. economic issues at the Swiss bank Julius Baer.
Ruecker said oil prices were likely capped at around $ 70 a barrel, as fuel price inflation, as noted last year, would affect demand at this level.
At the same time, he said oil prices were being supported at more than 50 dollars a barrel, as investment in the growth of shale production in the United States stopped below that price.
Ruecker said "the US oil shale boom is almost entirely responsive to the growth in global oil demand reflected by the surge in crude oil exports," which reached a record 3.6 million bpd in July. February.
"We expect … about 1.2 million bpd of US shale oil growth in the coming year," said Ruecker, which corresponds to growth forecasts for the world's oil demand. 1 to 1.3 million barrels per day for 2019.
The United States Environment Energy Information Administration (EIA) is scheduled to release its weekly report on crude oil production and storage on Wednesday at around 17:00 GMT.
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