Oil prices remained green on Thursday in the last session of 2020, after a turbulent year that saw prices fall due to the covid-19 pandemic.
A barrel of North Sea Brent for March delivery, on the first day as a benchmark contract, advanced 0.33%, or 17 cents, to $ 51.80.
The US WTI barrel for February rose 0.24% or 12 cents to $ 48.52.
The market will be closed on Friday, the first day of the year and a holiday in many parts of the world.
During the week, shortened to the end-of-year holidays, the price of black gold rose slightly, especially on Wednesday, taking advantage of the weekly report on US oil reserves.
“The big surprise is the very high level of US exports, proof that demand remains at a solid level despite refinements,” said Stephen Innes, an analyst at Axi.
Growing strongly since the first announcements of the covid-19 vaccines, Brent and WTI advanced by 8% and 6.5% in December, respectively.
But this performance is far from erasing the decline caused by the pandemic, which has led to lower fuel and energy consumption.
In 2020, the price of Brent lost 22%, and that of WTI, 21%.
“Market players aren’t ready to forget a year they’d like to forget: the year oil prices fell below zero. That shows you never have to say with commodities,” Phil Flynn summed up. by Price Futures Group.
Analysts are looking at 2021, where the short-term demand outlook is expected to remain weak, even as consumption could resume with vaccination campaigns.
“Prices have started to rise, provided they avoid unpleasant surprises,” warned Jeffrey Halley, an analyst at Oanda.
Even more optimistic, Phil Flynn says that “with the probable return of demand, the market will be under-supplied by the end of 2021.”
“The more difficult regulatory environment, with a new Biden administration in the United States, will also prevent the resumption of US oil production,” he said, adding that demand will move ahead of production. This suggests higher prices in 2021 and beyond.
The oil year will begin on Monday with the monthly meeting of the Organization of the Petroleum Exporting Countries (OPEC) and its partners, including Russia.
In early December, member countries decided to increase their production, which they voluntarily limit, by 500,000 barrels per day, to avoid flooding the market with the two million barrels per day originally planned.