The precise point on the fall of the oil prices at the beginning of this week:
Thus and at the opening of this session of Tuesday, March 23, 2021, the barrel of Brent North Sea oil for delivery in May reached 62.16 dollars around 11:45 am, that is to say a fall of almost 3.81% compared to its closing the day before.
On the other side of the Atlantic and on the New York Stock Exchange, the American barrel of WTI for delivery in May and which it is the first day of use as a reference contract, lost 3.72% with a quotation at 59.27 dollars the barrel.
Thus, for these two contracts, it is a loss of more than 6% that was recorded during the week, a first in 2021.
The fear of new reconfinements in Europe:
According to some market analysts, investors seem to fear that the demand for oil will once again encounter difficulties in the coming days because of the return of certain measures to fight the coronavirus pandemic in many countries.
One observes in particular this phenomenon in Germany, country which is confronted with an important increase of the contaminations and with a new variant much more lethal of Covid and which is going to place itself in reinforced lock during all the weekend of Easter.
In France, more than a third of the population is already confined, including 12 million people in the Paris region since Saturday.
To that comes to be added the setbacks met by the AstraZeneca vaccine which continue to make more complicated the deal in Europe within the framework of the fight against the Covid-19 which currently knows an acceleration of the third wave of the pandemic.
Finally, the measures envisaged by Joe Biden in the United States in favour of the environment are also being followed very closely by investors. Indeed, just two weeks after signing the major rescue plan of 1,900 billion dollars, Joe Biden could examine this week a proposal to invest 3,000 billion dollars, part of which in infrastructure to stimulate the economy and reduce CO2 emissions as reported by the New York Times on Monday.
An increase in oil supply:
Note also that the prospects of a growing oil supply are adding even more pressure on crude prices. According to Fawad Razaqzada of Thinkmarkets, members of the Organization of the Petroleum Exporting Countries, or OPEC, and their allies through the OPEC+ agreement, who meet next week, are considering slowly easing their supply restrictions as shale oil production in the U.S. is expected to accelerate.