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Oil Updates — Crude costs dips; IEA expects world oil market to be tight in H2 2023

Arab Information

RIYADH: Oil costs retreated on Thursday after rising for 2 periods, with traders nonetheless exhibiting lingering concern over a attainable US recession and weaker oil demand.

Brent crude fell 8 cents, or 0.09 %, to $87.25 a barrel by 11.30 a.m. Saudi time, whereas US West Texas Intermediate slid 7 cents, or 0.07 %, to $83.19.

Each benchmarks rose 2 % on Wednesday to their highest in additional than a month as cooling US inflation knowledge spurred hopes the Federal Reserve is more likely to cease climbing rates of interest.

Earlier tightening, nevertheless, which has lifted rates of interest to their highest since 2007, raised considerations that the Fed’s deal with halting inflation may throttle financial development and future oil demand on the planet’s greatest oil consumer.

China’s March crude oil imports surge 22.5%

China’s crude oil imports in March surged 22.5 % from a yr earlier to the best since June 2020, knowledge confirmed on Thursday, as refiners stepped up runs to seize gas export demand and in anticipation of home financial restoration.

Crude imports in March totaled 52.3 million tons, or 12.3 million barrels per day, in accordance with Normal Administration of Customs knowledge. This knowledge compares with 10.1 million bpd of crude imported in March final yr.

The imports had been in step with expectations of upper refinery runs, and product stock attracts on improved demand following the lifting of COVID restrictions late final yr.

Complete crude imports for the primary quarter stood at 136.6 million tons, a 6.7 % enhance over 127.9 million tons in the identical interval final yr.

China imported 8.9 million tons of pure gasoline in March, up 11.2 % from 8 million tons a yr in the past. Complete pure gasoline imports for the primary quarter stood at 26.7 million tons, down 3.6 % from final yr.

Oman crude oil deliveries on DME surged 18% in Q1

The Dubai Mercantile Trade delivered 63.77 million barrels of Omani crude by way of its trade supply mechanism within the first quarter of 2023, up 18 % from the 54.01 million barrels in the identical interval in 2022.

“We all the time have a look at the bodily efficiency of the trade as a real indicator of market dynamics within the East of Suez market. Now we have seen a powerful increase in crude oil demand for the reason that starting of the yr,” mentioned Raid Al-Salami, managing director of DME.

DME Oman Crude Oil futures are bodily settled contracts, a core Center East crude pricing benchmark. Center East nationwide oil corporations use the contract’s day by day pricing to find out oil costs for specialists within the area.

World oil market could possibly be tight in second half 2023: IEA’s Birol

The worldwide oil market might see tightness within the second half of 2023, which might push oil costs increased, Fatih Birol, govt director of the Worldwide Power Company, mentioned on Wednesday.

Oil costs have surged above $80 for the reason that starting of the month after the Group of the Petroleum Exporting International locations and allies, together with Russia, collectively referred to as OPEC+, shocked markets with an announcement of voluntary manufacturing cuts of 1.66 million bpd from Might till the top of 2023.

World markets have restructured after Russia invaded Ukraine final yr, prompting sanctions on Russian power that pressured nations to look elsewhere for barrels.

Birol mentioned that Europe was significantly prone to declines in Russian provide, however a milder winter helped keep away from a worst-case state of affairs this yr. 

Nevertheless, subsequent winter is predicted to be difficult for the area by way of power provides, Birol mentioned on the Columbia World Power Summit in New York.

Birol added that Europe ought to have the ability to do with out Russian liquefied pure gasoline.

Birol on Wednesday added that world fossil gas consumption might peak earlier than the late 2020s.

(With enter from Reuters)