World markets are recording a drop in oil prices

Oil prices remained above $85 on international markets on Thursday as traders weighed signs of higher supply in the United States and expectations of a recovery in Chinese demand.

The markets recorded a decline today, so the price of reference Brent oil is 83.81 dollars. On the American market, the value of WTI oil fell to $77.16.

Last week’s jump in oil stocks in the USA pressured prices to the highest level since June 2021.

Counterbalancing the rise in inventories were forecasts of a recovery in Chinese demand that fueled more optimistic sentiment among investors.

After easing measures to combat the coronavirus, China will account for almost half of the global growth in oil demand this year, the International Energy Agency (IEA) announced.

Global oil demand is growing

The Organization of the Petroleum Exporting Countries (OPEC) published a similar forecast. Due to the expected recovery in China, it raised its estimate of global oil demand growth this year.

At the same time, the market is closely watching production in Russia. Russian oil exports fell by only 160,000 barrels per day in January compared to pre-war levels in Ukraine but will be reduced by around one million barrels per day by the end of the first quarter, the IEA commented.

OANDA analyst Craig Erlam wrote that oil prices are currently very volatile, and traders must take in a lot of things, including the announced reduction in Russian production by 500,000 barrels per day in March, the recovery of China, and the uncertain outlook for the world economy.

The Organization of the Petroleum Exporting Countries reported separately that a barrel of its members’ oil basket cost $84.37 on Wednesday.