Oil prices, which got off to a good start on Monday, celebrating President Donald Trump's signing of a plan to help the American economy, have finally ended in the red, due to concerns about the demand and supply of black gold.

The barrel of North Sea Brent for February delivery fell 0.83%, or 43 cents, to $50 US.

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

After almost reaching their highest levels in ten months at the start of the session on Monday, in a small 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, former Minister of Energy, 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 offer

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,” Mr. Yawger worried, while black gold stocks are already high.

Especially as a resurgence of COVID-19 cases is expected after the holidays, which will further “destroy demand”, the expert added.

The American agreement for a new aid plan, which will amount to handing out a check of $600 to Americans within a certain limit of their income, “is not huge in the end”, said the Mizuho expert, not enough in any case to revive demand and consumption.

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