Crude prices have been seen driven by Washington’s plans, announced last week, from cBuy up to 3 million barrels of for its Strategic Reserve, following this year’s record release of 180 million barrels.
The dollar weakness It has also favored prices, making oil cheaper for holders of other currencies.
“Oil prices they could keep going upas we expect physical markets to continue to adjust due to supply constraints and stronger global demand,” said the QNB Qatari bank in a note, forecasting prices of between $90 and $115 per barrel in the coming quarters.
The OANDA Analyst Edward Moia said in a note that they are needed clear signs of demand growth so that prices continue to rise.
“Oil demand prospects will be key for prices to rise,” he said, adding that clarity on this could be elusive given mixed signals about the reopening of the Chinese economy.
tina teng, analyst at CMC Markets, noted that although China has relaxed pandemic restrictions, the increase in cases of COVID-19 has been negative for oil markets due to uncertainty about the economic recovery of the country.
Chinese oil imports
Chinese imports of crude oil from Russia increased by 17% in November compared to the previous yearas refiners secured more cargoes before the price cap imposed by the Group of Seven on December 5.
The increase made Russia China’s top oil supplier, ahead of Saudi Arabia.
Russian crude arrivals, including oil pumped through the East Siberian pipeline into the Pacific Ocean and ocean shipments from Russian ports in Europe and the Far East, amounted to 7.81 million tons last monthaccording to data from the General Administration of Customs published on Tuesday.
The total equals 1.9 million barrels per day (bpd), up from 1.82 million bpd in October and 1.63 million tons in the same period last year.
Since December 5, the European Union has banned imports of Russian crude oil. and the G7 countries introduced a cap of $60 per barrel on Russian oil in a attempt to limit Moscow’s ability to finance the war in Ukraine.
However, steep discounts on Russian crude continued to attract Chinese buyers in November, especially to independent refiners in Shandong, although some state-owned refineries have started to reduce their purchases due to concerns about Western sanctions on Moscow.
The Chinese imports from Saudi Arabia amounted to 6.62 million tons in November, or 1.61 million bpd. The figure represents a decrease of 11% compared to the previous year.
Analysts expected Saudi Arabia’s market share in China to remain firm or even increase in the future, after Chinese President, Xi Jinping, He vowed to cut more energy deals with the world’s top oil exporter.
Source: Ambito
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