Decrease in US crude inventories and increase in Chinese imports in April support higher demand expectations
09 May 2024 - 08:33
byEmily Chow
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Singapore — Oil prices rose on Thursday as falling US crude inventories amid rising refinery intake and a year-on-year increase in Chinese imports in April supported higher demand expectations for the world’s two largest crude consuming nations.
Brent crude futures for July rose 31c, or 0.4%, to $83.89 a barrel by 5.33am GMT. US West Texas Intermediate (WTI) crude for June was up 39c, or 0.5% to $79.38 a barrel.
“Oil markets were buoyed by a larger-than-expected draw in the US inventory data. The improved China’s trade balance data added to the upside momentum,” said Tina Teng, an independent market analyst, adding that crude prices may continue to track economic factors looking ahead.
Crude inventories in the US, the world’s biggest oil user, dropped last week by 1.4-million barrels to 459.5-million barrels, according to the Energy Information Administration, more than analysts’ expectations for a 1.1-million-barrel draw. Stockpiles fell as refinery activity increased by 307,000 barrels a day (bbl/day) in the period.
This caused petrol stocks to swell by more than 900,000 barrels to 228-million barrels, while distillate stockpiles including diesel and heating oil rose by 600,000 barrels to 116.4-million barrels.
“The market shrugged off the builds in gasoline [petrol] and distillate fuels as refiners ramp up for the upcoming driving season,” analysts at ANZ Research said in a note on Thursday.
Shipments of crude in April to China, the world’s biggest oil importer, were 44.72-million metric tonnes, or about 10.88-million barrels a day, according to China's customs data released on Thursday. That was up 5.45% from the relatively low 10.4-million barrels a day imported in April 2023.
The hope for a ceasefire in the Israel-Hamas conflict Gaza kept oil prices from moving higher. The US said earlier in the week that negotiations should be able to close the gaps between Israel and Hamas.
“While there may be some short-term relief for oil prices, it may be difficult to return to April's high above the $90 a barrel level, where geopolitical tensions were at its peak,” said Yeap Jun Rong, market strategist at IG.
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Oil firmer on fall in US stocks
Decrease in US crude inventories and increase in Chinese imports in April support higher demand expectations
Singapore — Oil prices rose on Thursday as falling US crude inventories amid rising refinery intake and a year-on-year increase in Chinese imports in April supported higher demand expectations for the world’s two largest crude consuming nations.
Brent crude futures for July rose 31c, or 0.4%, to $83.89 a barrel by 5.33am GMT. US West Texas Intermediate (WTI) crude for June was up 39c, or 0.5% to $79.38 a barrel.
“Oil markets were buoyed by a larger-than-expected draw in the US inventory data. The improved China’s trade balance data added to the upside momentum,” said Tina Teng, an independent market analyst, adding that crude prices may continue to track economic factors looking ahead.
Crude inventories in the US, the world’s biggest oil user, dropped last week by 1.4-million barrels to 459.5-million barrels, according to the Energy Information Administration, more than analysts’ expectations for a 1.1-million-barrel draw. Stockpiles fell as refinery activity increased by 307,000 barrels a day (bbl/day) in the period.
This caused petrol stocks to swell by more than 900,000 barrels to 228-million barrels, while distillate stockpiles including diesel and heating oil rose by 600,000 barrels to 116.4-million barrels.
“The market shrugged off the builds in gasoline [petrol] and distillate fuels as refiners ramp up for the upcoming driving season,” analysts at ANZ Research said in a note on Thursday.
Shipments of crude in April to China, the world’s biggest oil importer, were 44.72-million metric tonnes, or about 10.88-million barrels a day, according to China's customs data released on Thursday. That was up 5.45% from the relatively low 10.4-million barrels a day imported in April 2023.
The hope for a ceasefire in the Israel-Hamas conflict Gaza kept oil prices from moving higher. The US said earlier in the week that negotiations should be able to close the gaps between Israel and Hamas.
“While there may be some short-term relief for oil prices, it may be difficult to return to April's high above the $90 a barrel level, where geopolitical tensions were at its peak,” said Yeap Jun Rong, market strategist at IG.
Reuters
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