The US oil inventories rose 7.8 million barrels in the week to December 9according to market sources citing data from the American Petroleum Institute (API)while analysts polled by Reuters had expected a slump in 3.6 million barrels. The government data will be published this afternoon.
Inventory data clouded the bullish sentiment from the previous sessionbased on the hopes of a revival of Chinese demand with the easing of restrictions due to COVID-19 and a weakening of the dollar after the data that showed a moderation of inflation in the United States.
Nevertheless, Stephen Brennocka PVM analyst, warned that although “the recent Beijing’s decision to ease strict COVID-19 policies is a positive step (only) it is expected that pave the way for a rebound in Chinese oil demand from the second quarter of 2023″.
Looking to 2023, OPEC expects that oil demand increases by 2.25 million barrels per day (bpd) over the next year, up to 101.8 million bpdwith the upside potential of China.
The IEA said this wednesday that growth in world demand for oil will slow down next year, but it will remain a solid 1.7% as China recovers from the COVID economic slowdown. This year, China is still on track for a 400,000 barrels per day (bpd) contraction in oil demandto about 15.4 million bpd, the IEA added, before recovering to nearly 1 million bpd in 2023.
Russia’s oil production will fall by 1.4 million barrels per day (bpd) next year, the IEA predicted, with an even tighter balance sheet when a price cap imposed on December 5 by the G7, the European Union and Australia, which seeks to rein in Moscow’s war revenue, takes effect. .
The oil prices they have seen each other supported by a leak and one TC Energy Corp Keystone pipeline outagewhich ships 620,000 barrels a day of Canadian crude to the United States.
Source: Ambito
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