Oil prices break negative streak and rebound due to opportunity purchases

Los oil prices They stimulated opportunity purchases, so crude oil rebounded on Monday after several falls, also driven by colder weather in Europe and the United States.

The price of the barrel of North Sea Brent for February delivery gained 2.48% to $77.99 in London.

Meanwhile, the barrel of West Texas Intermediate (WTI) for January delivery rose 3.02% to $73.17 in New York.

As he Brent As the WTI They came from six consecutive negative sessions, which had cut their prices by 12% in each case.

“We were looking for a floor, and in four or five weeks we went from over $90 (in early November) to $70 on Friday,” said Stephen Schork, analyst and author of the Schork Report.

“Now we are looking to rebound,” he added. “And I hope we find support and stay around these levels,” she concluded.

Weather conditions in the northern hemisphere also boosted the market.

In Europa a cold air mass from the Arctic brought the temperature down several degrees below the seasonal averages. And in the United States, a cold front is going to enter a good part of the eastern part of the country.

To these elements is added the closure of the oleoducto Keystone, which carries about 600,000 barrels a day from Canada to the United States, after a leak in Kansas last week. There is no forecast of return to service.

“The repair of oleoducto Keystone appears to be taking longer than anticipated, raising the possibility of further reservation withdrawals at Cushing,” said Jim Ritterbusch of Ritterbusch and Associate.

The operators were concerned about the delay in the cleaning work of the Canadian company to restart its oleoducto Keystone following the leak of more than 14,000 barrels of oil last week, the largest oil spill in the United States in nearly a decade.

TC Energy closed the pipeline after the spill was discovered late last Wednesday in Kansas. On Monday, the company told authorities in Washington County, Kansas, that it had not yet determined the cause and had begun digging around the oleoducto Keystonewhich has a capacity of 622,000 barrels per day.

The outage is expected to reduce supply at the storage center for Cushing (Oklahoma), the benchmark delivery point for US crude oil futures.

While, Chinathe world’s largest crude oil importer, continued to ease its strict oil policy zero Covid, although the streets of the capital, Beijing, remained quiet and many businesses were closed for the weekend.

According to Bank of America Global Researchthe Brent it could rebound above $90 a barrel if the US Federal Reserve takes a dovish stance on monetary policy and China achieves a “satisfactory” economic reopening.

“The reopening of China is certainly something the market is focused on,” said Phil Flynn, an analyst at Price Futures group.

The Russian President, Vladimir Putinsaid on Friday that Russia could cut production and would refuse to sell oil to any country that imposes a “stupid” price cap on Russian exports.