Author: Florence Tan
Article: Original article
Publication date: Friday, December 9, 2022
Oil prices are now showing the largest weekly decline over the recent months as traders expect that the effect of reopening in China, which is now easing its COVID restrictions, would take months to start affecting demand.
News of an accident that resulted in a closure of the TC Energy’s Keystone pipeline in the U.S. led to a short-term increase on Thursday, but the prices failed to keep at those levels and went down.
As it was stated by Vandana Hari, founder of oil market analysis provider Vanda Insights, the market is lacking confidence in determining a bottom for crude despite a notable series of failures during several recent sessions.
According to her opinion, Thursday’s decline was a bit bewildering and signalled growing cluelessness, despite two serious supply disruptions.
Hari added that the situation might be additionally complicated by weakening trading activity when the few remaining actors try too hard to protect themselves by continuing selling and avoiding long positions.
Forecast: the growth of oil might happen after a prolonged decline