Oil prices, which had started well on Monday, celebrating, like the stock market, President Donald Trump's signing of a plan to help the US economy, finally ended in the red, due to concerns about the demand and supply of black gold. 

A barrel of North Sea Brent for delivery in February lost 0.83%, or 43 cents, to US$50.

The US barrel of WTI for the month of February dropped 1.18% or 57 cents, to $ 47. 

After almost reaching their highest levels in ten months on Monday at the beginning of the session, in a reduced market with the closure of London for the Boxing Day holiday, the prices of the main contracts changed direction in the middle of the day in New York.

According to Robert Yawger of Mizuho USA, markets reacted to a statement the day before by Russian Deputy Prime Minister Alexander Novak, a former energy minister, supporting the idea that the market is capable of absorbing a second increase in production of 500,000 barrels per day as early as February.

Too much supply

This issue is expected to be discussed at the next meeting of oil-producing countries and their allies, OPEC+, on January 4.

"This amounts to a hell of an increase in supply," Yawger said, while oil stocks are already high. 

Especially since a resurgence of COVID-19 cases is expected after the holidays, which will still "destroy demand", added the expert.

The AMERICAN agreement for a new aid plan, which will amount to distributing a check of $ 600 to Americans within a certain limit of their income, "is ultimately not huge," said the expert of Mizuho, not enough in any case to revive demand and consumption.

"There is too much supply of oil, and not enough demand," he summed up. "You could also say that there is too much supply of oil and too much COVID."