Oil Prices Rebound Slightly, But Concerns Over China’s Demand Keep Market Worried – Weekly Report

2023-08-18 20:06:19
Closing price: Oil ended up slightly on Friday but ended the week down, the market worried regarding demand from China, whose economy is going through a period of deflation and a real estate crisis. Brent BRENT Brent or North Sea crude is a variation of crude oil serving as a benchmark in Europe, listed on the InterContinentalExchange (ICE), a stock exchange specializing in energy trading. It has become the first international standard for setting oil prices. from the North Sea, for October delivery, gained 0.80% to $84.80 but remained down 1.37% on the week.

Its American equivalent, the barrel of West Texas Intermediate (WTI WTI West Texas Intermediate (WTI), also known as Texas Light Sweet, is a variation of crude oil that serves as a standard in pricing crude oil and as a commodity for oil futures contracts with the Nymex (New York Mercantile Exchange). ), the stock exchange specializing in energy.), for September delivery, advanced 1.06% to $81.25 but posted a weekly loss of 1.28%.

Crude prices picked up some strength ahead of the weekend following reports that a large draw was made this week from the Cushing vats in Oklahoma where crude oil is stored. WTI WTI West Texas Intermediate (WTI), also known as Texas Light Sweet, is a variation of crude oil that serves as a standard in pricing crude oil and as a commodity for oil futures contracts with the Nymex (New York Mercantile Exchange). ), the stock exchange specializing in energy. American.

“We sent a drone overflight and reported that there was a significant drawdown of over 3 million barrels from Cushing’s tanks this week,” Kpler’s Matt Smith told AFP. “This bodes well for the next inventory statement to be released next week by the U.S. Energy Information Agency (EIA),” the analyst added.

“This signals a draw to fuel exports from the Gulf region” of Mexico, he said, noting that US oil prices are becoming “relatively competitive with the rise in crude from the Middle East”.

“We are recording purchases from Asia,” said Matt Smith.

But the evolution of black gold prices remains caught between worries regarding Chinese demand and Saudi Arabia’s desire to prevent a drop in prices by reducing its production, analysts said.

“The economic difficulties facing China are weighing heavily on the state of mind of investors”, less inclined to move towards risky assets such as crude oil, which is more volatile, summarized Tamas Varga analyst of PVM Energy.

???????? Retail sales weaker than expected in July, slowdown in industrial production: China even suspended the monthly publication of its detailed youth unemployment figures on Tuesday, following a record level in recent months.

On Thursday, the Chinese giant Evergrande, symbol of the real estate crisis in China, requested its placement in the United States under bankruptcy proceedings.

???????? In the United States, the market was also keeping an eye on the climatic turbulence with storms coming from the west which might enter the Gulf region next week and delay tankers importing crude, noted Andy Lipow of Lipow Oil Associates.

(c) AFP

Oil closes slightly higher but remains on a weekly decline

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