Strong Chinese Crude Imports Boost Oil Prices

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As Oil Price writes in the article Draw In Crude Inventories Lifts Oil Prices, EIA's report could reinforce oil price optimism, especially now that oilfield operators in the Gulf of Mexico are returning to normal operation after shutting down 92 percent of production capacity because of Hurricane Nate.

Brent also rose 2 percent the previous day. The news alleviated investor concern that demand in the world's largest crude importer might be waning amid faltering economic growth. Gasoline stockpiles, on the other hand, unexpectedly increased by 2.5 million barrels. But if Mr. Trump moves to disavow the deal or impose fresh sanctions on Iran it could undermine the country's export capacity.

Chinese import data "was well in excess of expectations and you've got an armed stand-off in Kurdistan", Eric Nuttall, a portfolio manager with Ninepoint Partners LP in Toronto, said by telephone.

To help keep oil prices around these levels, or closer to the preferred $60 per barrel level, will likely require more discussions and co-operation over production among all oil producing countries.

That's a view shared by a variety of market participants and analysts alike.

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OPEC said its crude oil production had increased by almost 90,000 barrels a day in September, complicating the cartel's efforts to limit output and curb the global supply glut.

Oil prices have dropped following reports of an increase in U.S. crude inventories despite the OPEC-led efforts to rebalance the market.

OPEC, with other producers including Russian Federation, has agreed to production cuts of 1.8 million bpd. The agreement's impact wasn't immediate, but global oil prices have risen steadily over the past few months, supported by strong demand.

There is "little doubt that the leading producers have recommitted to do whatever it takes to underpin the market and to support the long process of rebalancing", the IEA said in its report. Analysts had forecast a draw of 400,000 barrels.

"Taking 2018 as a whole, oil demand and non-Opec production will grow by roughly the same volume and it is this current outlook that might act as the ceiling for aspirations of higher oil prices", the agency said.

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