• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 2 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 22 hours "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
  • 6 days America should go after China but it should be done in a wise way.
  • 12 days Does Toyota Know Something That We Don’t?
  • 1 day World could get rid of Putin and Russia but nobody is bold enough
  • 23 hours How Far Have We Really Gotten With Alternative Energy
  • 19 mins Even Shell Agrees with Climate Change!
  • 2 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 4 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in

Breaking News:

OPEC Lifts Production in February

Mysterious Power Outage Paralyzes Tajikistan

Mysterious Power Outage Paralyzes Tajikistan

Tajikistan experienced a significant power…

Anti-Oil Activists Shift Focus to Insurers

Anti-Oil Activists Shift Focus to Insurers

Activists have also started attacking…

Petrobras Plans Dividend Squeeze To Fund Transition to Renewables

Petrobras Plans Dividend Squeeze To Fund Transition to Renewables

Brazil’s state-owned energy heavyweight Petrobras…

Charles Kennedy

Charles Kennedy

Charles is a writer for Oilprice.com

More Info

Premium Content

Oil Prices Climb As China’s Manufacturing Data Stuns Markets

  • Oil prices started the month on bullish footing, with Brent breaking above $84 and WTI passing $77.60.
  • China’s factory activity rose for the first time in seven months while manufacturing activity expanded at the fastest rate since 2012.
  • Oil markets have been waiting for signs that China’s oil demand is rebounding, and this could be the start of an upward trend for oil.

Crude oil prices rose today driven by new data from China, which suggested its manufacturing activity was picking up after the slump amid last year’s lockdowns.

Brent crude was trading at just above $84 per barrel at the time of writing and West Texas Intermediate was changing hands at over $77.60 per barrel, both up by about 0.7 percent from yesterday’s close.

Reuters reported that China’s factory activity rose last month, for the first time in seven months. PMI data also showed manufacturing activity expanding at the fastest rate in over a decade, reinforcing expectations of a strong economic rebound in the world’s largest oil importer.

China’s oil demand is seen as the chief factor behind expectations for higher oil prices later in the year. A recent Reuters poll among economists showed most expect Brent crude to top $90 per barrel in the second half of the year. The respondents cited Chinese demand and Russian supply as factors.

The China demand expectations were so pronounced this week that they offset the American Petroleum Institute’s estimate that crude oil inventories in the United States had expanded for yet another week. According to the API, the build came in at 6.2 million barrels.

Government data on U.S. inventories from the Energy Information Administration is out later today but the EIA, too, has been reporting sizeable inventory builds over the past several weeks.

The U.S. inventory reports have capped oil price gains to an extent lately, and OPEC production data may add to that cap. According to a Reuters survey, the group’s combined output rose by 150,000 bpd in February from the previous month to a total 28.97 million barrels daily.

This is still 700,000 bpd lower than what OPEC produced in September last year but if the increase is confirmed, it would suggest OPEC is not as rigid about its output limit enforcement as demonstrated.

By Charles Kennedy for Oilprice.com

ADVERTISEMENT

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • Mamdouh Salameh on March 01 2023 said:
    This isn’t surprising since China is the world’s largest economy based on purchasing power parity (PPP) accounting for 21.43% of a global economy of $140 trillion based on PPP. It has become the bellwether of the global economy.

    China’s oil demand expectations have become so pronounced and awaited that they totally eclipse estimates by both the American Petroleum Institute (API) and the US Energy Information Administration (EIA) of rising US oil inventories..

    Moreover, the global oil market is starting to ignore these these announcements as they always coincide with rising oil prices. Their repetitiveness and punctuality can’t be coincidental. They seem to be used to manipulate oil prices.

    Dr Mamdouh G Salameh
    International Oil Economist
    Global Energy Expert

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News