WTI crude futures slipped more than 1% to near $71 as investors eased concerns about the Canadian pipeline closure.
At 11:20 p.m. Thai time, West Texas Crude Oil Contract (WTI) for delivery in January. Which traded on the NYMEX, minus $ 0.77, or 1.07%, to $ 71.24 / barrel.
The price of WTI oil soared more than 4% to break above $75 initially after Canada’s TC Energy announced the closure of the Keystone pipeline due to a leak.
Keystone is a conduit that transports oil from Alberta in Canada to the US Gulf Coast and Midwest.
However, oil prices subsequently plummeted. After the expert said Closing the pipeline will not have much effect on the amount of oil in the market.
In addition, oil prices were initially boosted by hopes that China would reopen the country. After the measures to control COVID-19 are relaxed. continually which will increase demand for oil
The Shanghai authorities announced the abolition of the requirement for citizens to present COVID-19 test results. Be negative before entering the restaurant or entertainment place It will take effect tomorrow.
Shanghai, the center of China’s trade It has been subject to several lockdowns in recent months. As a result, economic activity slowed down. and causing people to protest against the COVID-19 containment measures
Oil prices also benefited from the congestion of Russian crude tankers from Black Sea ports to the Mediterranean. which caused the oil transportation to be delayed After the implementation of measures to cap the price of Russian crude oil from the G7 and the European Union (EU).
At the same time, investors sent speculative buying into the market. After oil prices plummeted yesterday Amid concerns about a recession Including concerns about a slowdown in fuel demand in the US. After US gasoline and refined stocks rose more than expected last week.