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Oil prices fell on Thursday, due to the increase in supply in a market where consumption is expected to slow in a sluggish economic context.
Brent crude futures in the first month traded at $ 65.88 per barrel at 4:41 am GMT, down 24 cents or 0.4% from their last close.
WTI (West Texas Intermediate) futures in the United States were $ 55.96 per barrel, down 29 cents or 0.5%.
Since the beginning of October, oil prices have lost about a quarter of their value, with supply increasing as demand slows along with the economic slowdown.
"The Asian refiners and consumers we are talking about are talking about initial concerns about slowing demand," said Mike Corley, president of Mercatus Energy Advisors.
US bank Morgan Stanley said in a note Wednesday that China's "economic conditions were deteriorating significantly" in the third quarter of 2018, while analysts at Capital Economics said that "the short-term economic outlook for China were still mediocre.
China is the largest importer of oil and the second largest consumer of crude oil.
At the same time, data released this week showed an economic contraction of industrial powers in Japan and Germany in the third quarter.
At the same time, supply has increased, notably due to a 22% increase in crude oil production in the United States this year, which reached a record 11.6 million barrels per day (bpd ).
"Producers (…) have more barrels than they can sell at the moment," said Corley of Mercatus Energy Advisors.
As a result, oil stocks are increasing. The American Petroleum Institute said Wednesday at the end of the week that crude stocks had risen 8.8 million barrels during the week, from 440.7 million barrels to 9 November, while analysts said expected an increase of 3.2 million barrels.
Fearing a new overabundance, as in 2014, when prices fell under the weight of excess supply, the Organization of Petroleum Exporting Countries (OPEC) is currently discussing supply-side reduction.
To succeed, OPEC – under the de facto leadership of Saudi Arabia – will need Russia on its side, which is not a member of OPEC.
A joint effort by OPEC and Russia aimed at restricting supply from 2017 was one of the main factors behind the rise in crude oil prices last year and at the end of the year. first half of 2018.
"Russia, OPEC and Saudi Arabia are watching the market.If they find an imbalance between supply and demand, they (they) will of course take joint action to reduce the offer, "said Kirill Dmitriev, director of the Russian office. Direct Investment Fund, the country's investment agency in sovereign wealth matters.
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