Oil Prices Surge on US Inventory Drop, Chinese Import Increase; Brent at $83.85, WTI at $79.33
Oil prices increased on Thursday due to decreasing US crude inventories, rising refinery intake, and an increase in Chinese imports in March.
These factors boosted expectations for higher demand in the world's top crude consuming nations, the US and China.
Brent crude futures rose 0.3% to $83.85 a barrel, while US West Texas Intermediate crude gained 0.4% to $79.33 per barrel.
The larger-than-expected drawdown in US inventory data and improved China's trade balance data contributed to the upward trend in oil prices.
Analyst Tina Teng suggested that oil markets would continue to be influenced by economic factors moving forward.
The Energy Information Administration reported a larger-than-expected drop of 1.4 million barrels in US crude inventories last week, bringing the total to 459.5 million barrels.
The decrease was due to increased refinery activity, which caused gasoline stocks to rise by over 900,000 barrels to 228 million barrels, and distillate stockpiles to increase by 600,000 barrels to 116.4 million barrels.
Despite the builds in gasoline and distillate fuels, analysts at ANZ Research noted that the market remained unfazed due to refiners ramping up for the upcoming driving season.
Meanwhile, China's customs data revealed that the country imported 10.88 million bpd of crude oil in April, which equated to 44.72 million metric tons.
In May 2023, global oil imports increased by 5.45 percent compared to the previous month's relatively low level of 10.4 million bpd.
However, the potential for a ceasefire in the Israel-Hamas conflict in Gaza prevented oil prices from rising further.
The US expressed optimism that negotiations could bridge the gaps between the two parties.
Market strategist Yeap Jun Rong noted that while there might be temporary relief for oil prices, it could be challenging to return to the high above $90 per barrel level seen in April 2023, when geopolitical tensions were at their peak.
Brent crude futures rose 0.3% to $83.85 a barrel, while US West Texas Intermediate crude gained 0.4% to $79.33 per barrel.
The larger-than-expected drawdown in US inventory data and improved China's trade balance data contributed to the upward trend in oil prices.
Analyst Tina Teng suggested that oil markets would continue to be influenced by economic factors moving forward.
The Energy Information Administration reported a larger-than-expected drop of 1.4 million barrels in US crude inventories last week, bringing the total to 459.5 million barrels.
The decrease was due to increased refinery activity, which caused gasoline stocks to rise by over 900,000 barrels to 228 million barrels, and distillate stockpiles to increase by 600,000 barrels to 116.4 million barrels.
Despite the builds in gasoline and distillate fuels, analysts at ANZ Research noted that the market remained unfazed due to refiners ramping up for the upcoming driving season.
Meanwhile, China's customs data revealed that the country imported 10.88 million bpd of crude oil in April, which equated to 44.72 million metric tons.
In May 2023, global oil imports increased by 5.45 percent compared to the previous month's relatively low level of 10.4 million bpd.
However, the potential for a ceasefire in the Israel-Hamas conflict in Gaza prevented oil prices from rising further.
The US expressed optimism that negotiations could bridge the gaps between the two parties.
Market strategist Yeap Jun Rong noted that while there might be temporary relief for oil prices, it could be challenging to return to the high above $90 per barrel level seen in April 2023, when geopolitical tensions were at their peak.
Translation:
Translated by AI
