The data published on the OilPrice website show a slight drop compared to the previous trading, and that a barrel of Brent oil costs 85.87 dollars, while crude WTI oil is trading for 80.03 dollars.
Signs of a weakening U.S. economy and unexpectedly strong U.S. oil stock growth worried the traders.
A report from S&P Global showed a decline in activity in the U.S. economy in January for the seventh month in a row.
U.S. crude oil inventories rose by about 3.4M barrels last week, according to trade sources citing data from the American Petroleum Institute (API).
The data fueled concerns about oil demand, overshadowing China’s recovery after the easing of coronavirus restrictions.
Traders will closely monitor supply decisions by the Organization of the Petroleum Exporting Countries (OPEC) and its allies. OPEC+ is likely to confirm the current production policy at its February 1 meeting, according to sources in the producer group.
In October, OPEC+ decided to cut production from November to the end of the year by 2M barrels per day.
On Tuesday, OPEC announced that a barrel of its members’ oil basket fell to $84.89.
American Market vs. European
Oil prices on world markets rose for the second week as traders expect demand for the energy product to pick up in China.
Fears about a recession in Western economies took a back seat last week. The price of a barrel on the London market was 87.63 dollars, while in New York, the barrel rose to 81.30 dollars, the Mina agency reports.
“Black gold” on the London market is currently traded for $87.40, while a barrel on the American markets costs $81.47, according to the latest data published on the OilPrice website.
