Economic data from China released earlier today indicated that growth slowed in the second quarter, raising concerns about demand in the world’s second largest oil user while Libya resumed production over the weekend. Brent crude futures were down 0.9% to $79.15 per barrel. Texas Intermediate Crude was down 0.9% to $74.75 per barrel. China’s GDP …
Economic data from China released earlier today indicated that growth slowed in the second quarter, raising concerns about demand in the world’s second largest oil user while Libya resumed production over the weekend. Brent crude futures were down 0.9% to $79.15 per barrel. Texas Intermediate Crude was down 0.9% to $74.75 per barrel.
China’s GDP increased 0.8% from previous quarter in April till June. This is due to the country’s post-pandemic recovery stalling due to weaker demand at home and abroad, according to the National Bureau of Statistics. Head of Commodities in ING’s mentioned that the GDP came in below expectations, hence the country will do little to ease the concerns over the Chinese economy.
According to NBS Statistics, Chinese refineries processed 1.6% more oil daily in June than in May as they ramped up operations following spring maintenance, in accordance with the world’s top crude importer’s high imports previous month. Oil demand increases rapidly on a yearly basis, but headline such as GDP numbers seemed to be the focus of the market instead, added by the head of Commodities. According to a senior portfolio manager located in Singapore, the capital of China is likely to be cautious in timing any new stimulus measures, fearful of driving commodities price higher.
Prices fell after both benchmarks gained for the third week in a row and reached their highest level since April, a s output at Libyan oilfields was shut down and as Shell halted exports of a Nigerian crude, restricting supply. Namely, Sharara and El Feel, two Libyan oilfields which were shut down on Thursday resumed production on Saturday evening. The 108-field remained closed. Production was halted in protest over the kidnapping of a former finance minister.
Oil shipments from Western ports in Russia are expected to decline by 100,000 – 200,000 bpd this month. This indicates that Moscow is following through a vow to cut supplied in sync with OPEC leader Saudi Arabia.
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