2023-08-08 22:40:41
Oil prices
Oil prices reversed mid-session declines of more than 2 percent, to a rise with renewed enthusiasm about the impact of voluntary production cuts, on expected data later in the day on US oil inventories during the past week.
“Trade data from China was disappointing, as it again showed a slowdown in demand both domestically and overseas, which is consistent with what we’ve seen elsewhere,” said Craig Erlam, an analyst at online trading platform OANDA.
But Irlam also noted that voluntary production cuts have supported the market against selling forces.
Brent crude futures rose 46 cents, or 0.53 percent, to $85.79 a barrel by 17:48 GMT, and US West Texas Intermediate crude rose 54 cents, or 0.65 percent, to $82.47 a barrel.
Oil prices fell by more than 2 percent in the middle of the session, after data showed that China’s imports and exports fell more than expected in July, in another indication of weak growth in the world’s largest oil importer, but losses were limited due to tight supplies. Expected.
Data showed, on Tuesday, that China’s imports of crude oil fell 18.8 percent on a monthly basis in July, its lowest level since January.
According to data from the General Administration of Customs, the total shipments of crude oil imported to China amounted to 43.69 million tons in July, equivalent to 10.29 million barrels per day.
Customs data also showed that China’s exports fell 14.5 percent year-on-year in July, while imports shrank 12.4 percent, in the worst export performance for the world’s second-largest economy since February 2020.
Despite the weak data, some analysts are still optimistic about fuel demand in China in the August-early October period in light of rising oil refining rates.
On the supply side, Saudi Arabia, the world’s largest oil exporter, said it would extend a voluntary cut in oil production by one million barrels per day for another month to include September, adding that it might extend the cut beyond that or make a larger cut in production after September.
Russia also said it would cut its oil exports by 300,000 barrels per day in September.
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