December WTI crude oil futures are edging higher late Thursday, but struggling to turn higher for the week. The price action has been volatile throughout the week especially today when traders were asked to deal with an aggressive Federal Reserve rate hike from the previous day, a wicked trade in the U.S. Dollar due to a Bank of Japan intervention, and a smaller than expected rate hike by the Bank of England.
When the dust finally began to clear, the prospect of higher Chinese demand and geopolitical risks fueled by an escalation of the war in Ukraine, proved to be strong bullish catalysts.
China Crude Demand is Rebounding after Lifting of Strict COVID-19 Restrictions
At least three Chinese state oil refineries and a privately run mega refiner are considering increasing runs by up to 10% in October from September, eyeing stronger demand and a possible surge in fourth-quarter fuel exports, people with knowledge of the matter said, Reuters reported.
Chinese refiners are expecting Beijing to release up to 15 million tonnes worth of oil products export quotas for the rest of the year to support the no. 2 economy’s sagging exports. Such a move would signal a reversal in China’s oil products export policy, add to global supplies and depress fuel prices, according to Reuters.
Traders Eyeing Supply Disruptions as Russia Begins Massive War Call-Up
Oil prices are being underpinned on Thursday after Russia pushed ahead with its biggest…