Oil prices rise, but end the quarter in the red

On the last working day of the year, oil prices demonstrate multidirectional dynamics, fluctuating in the range of $83-84 per barrel. Despite local growth, oil finishes the fourth quarter in the red. The current Brent quote is $83.20, WTI oil is trading near $78.20 per barrel.

Pressure on the market is exerted by fears that the abrupt lifting of quarantine restrictions in China, which, by the way, has already led to an increase in the incidence of COVID-19, will weaken the country's economy and demand for oil. Moreover, experts do not rule out a new wave of coronavirus cases around the world. 

Yesterday's data from the US Department of Energy had an additional impact on the oil market. The report showed an unexpected increase in oil reserves in the country last week. Reserves increased by 718 thousand barrels, while analysts on average predicted a decrease of 1.2 million barrels.

Gasoline inventories decreased by 3.1 million barrels, distillates – increased by 283 thousand barrels.

Analysts note that serious uncertainty awaits market participants next year, and the oil market will remain highly volatile. It is also possible that the central banks of the world will raise rates further, and there is a high probability of a recession in the global economy.