• 4 minutes Why Trump will win the wall fight
  • 7 minutes Tension On The Edge: Pakistan Urges U.N. To Intervene Over Kashmir Tension With India
  • 12 minutes Maduro Asks OPEC For Help Against U.S. Sanctions
  • 16 minutes Washington Eyes Crackdown On OPEC
  • 5 hours Climate Change: A Summer of Storms and Smog Is Coming
  • 3 hours Itt looks like natural gas may be at its lowest price ever.
  • 5 hours America’s Shale Boom Keeps Rolling Even as Wildcatters Save Cash
  • 17 hours North Korea's Kim To Travel To Vietnam By Train, Summit At Government Guesthouse
  • 19 hours AI Will Eliminate Call Center Jobs
  • 19 hours Oil imports by countries
  • 23 hours NZ Oil, Gas Ban Could Cost $30 Bln
  • 8 hours US-backed coup in Venezuela not so smooth
  • 2 hours Amazon’s Exit Could Scare Off Tech Companies From New York
  • 1 day Solar and Wind Will Not "Save" the Climate
  • 1 day Ayn Rand Was Right
  • 1 day Indian Oil Signs First Annual Deal For U.S. OilIndian Oil Signs First Annual Deal For U.S. Oil

Oil Recovers From Volatile Week

Rig

Oil has experienced a tumultuous week, with news from China shaking up the already fragile balance of the markets. The Chinese economy seems to be cooling down, an odd thing to say given that China’s GDP growth amounted to 6.6 percent last year, yet several factors are pointing to the inevitability of a slowdown. For the first time in the last 27 years car sales have fallen by 2.8 percent in 2018 year-on-year, with CNPC expecting Diesel fuel demand to descend into negative territory in the upcoming 12 months.

(Click to enlarge)

This does not mean China will take in less crude, pipeline-supplied natural gas and LNG than previously, yet a more palpable slowdown is definitely in the cards. The oil market has reacted by falling 3 percent on Tuesday, recovering somewhat the following day after the Chinese finance ministry has vowed to ramp up fiscal spending to boost the economy. Global benchmark Brent traded at 62 USD per barrel on Wednesday afternoon, whilst WTI moved in the 53.5-54 USD per barrel interval.

1. US Commercial Stocks Fall Modestly, Products Surge

(Click to enlarge)

- US commercial crude stocks decreased by 2.7 MMbbl, roughly double of what analysts have predicted, to 437.1MMbbl.
- For the week ended January 18, analysts predict a further draw, to the extent of 1MMbbl, due to a bounce-back in refinery utilization and more robust exports.
- The East Coast’s inventories (PADD 1) were the main downward…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin



Oilprice - The No. 1 Source for Oil & Energy News