Brent crude futures declined by 4 cents to $82.92 per barrel, while US West Texas Intermediate crude futures dipped 1 cent to $79.12 per barrel despite China’s import and export growth beating estimates
Brent crude futures declined by 4 cents to $82.92 per barrel, while US West Texas Intermediate crude futures dipped by 1 cent to $79.12 per barrel despite China’s import and export growth beating estimates
Oil prices remained steady on Thursday, holding onto the gains from the previous day. This was supported by positive trade data from China and a smaller-than-expected increase in crude inventories in the US, along with significant reductions in fuel stocks. However, there were concerns that the anticipated interest rate cuts in the US might be postponed, which limited the gains in oil prices.
Despite these factors, Brent crude futures declined by 4 cents to $82.92 per barrel, while US West Texas Intermediate crude futures only dipped by 1 cent to $79.12 per barrel despite China’s import and export growth beating estimates.
China’s trade balance data is a positive sign for the oil market’s demand outlook, according to Auckland-based independent analyst Tina Teng.
However, she added that risk-off sentiment dominated financial markets as stocks are retreating on Wall Street.
China, being the largest crude importer in the world, reported a 5.1% increase in imports during the first two months of 2024 compared to the same period last year, reaching approximately 10.74 million barrels per day. This upward trend in imports was driven by refiners increasing their crude purchases to meet the demand for fuel sales during the Lunar New Year holiday.
On the other hand, China’s exports of refined products in January and February decreased by 30.6% compared to the previous year, leading to reduced supplies for global markets. The positive trade data from China, as the second-largest economy globally, indicates a potential turning point in global trade and provides encouragement for policymakers in their efforts to support the sluggish economic recovery.
Although crude inventories continued to rise for the sixth consecutive week, with a build of 1.4 million barrels, gasoline and distillate stocks saw larger-than-expected declines, as revealed by the EIA data.
