Oil prices rose, at the end of trading today, Thursday, July 13 (2023), to continue to reap gains for the third day in a row, amid hopes for a recovery in demand.
This came after US inflation and economic data raised hopes that the Federal Reserve might have fewer hikes in interest rates, with the dollar falling.
Oil prices were supported by Chinese trade data which showed that monthly oil imports hit the second highest level on record in June.
OPEC raised its expectations for oil demand growth in the current year (2023) by about 90 thousand barrels per day, so that the growth is expected to reach 2.44 million barrels per day, and it also expected demand growth by about 2.25 million in 2024.
On the other hand, the International Energy Agency boosted its estimates of oil demand growth in 2024 by 300,000 barrels per day, to 1.1 million barrels per day, but it lowered its forecast for the current year for the first time this year by about 220,000 barrels per day.
Oil prices today
At the end of the session, benchmark Brent crude futures – for September 2023 delivery – rose by 1.56%, to $81.36 a barrel.
US West Texas Intermediate crude futures – August 2023 delivery – increased by 1.50% to $76.89 a barrel, according to figures seen by the specialized energy platform.
And oil prices ended their dealings, yesterday, Wednesday, July 12, 2023, with an increase of more than 1%; As the price of a barrel of Brent crude exceeded the $80 level for the first time since April (2023), with the US dollar declining after US data showed slowing inflation.
Inflation in America
US data showed, on Wednesday, that consumer prices rose modestly in June, recording the smallest annual increase in more than two years.
Markets are anticipating a further hike in interest rates, but oil traders are hoping that the hikes will be limited; Higher rates can slow economic growth and reduce demand for oil.
“The lower-than-expected US inflation reading indicates that the Fed’s tightening cycle so far is having the desired effect of easing pricing pressures,” said IG Market Strategist Yip Jun Rong.
“Some catch-up gains seem to be playing their part, with USD weakness and some follow-through in recent Chinese stimulus hopes counteracting the catalysts for bearish sentiment,” Yip added.
China’s oil imports
Meanwhile, China’s total imports of crude oil in June came to 52.06 million metric tons, or 12.67 million barrels per day, up 45.3% year-on-year, marking the second-highest monthly figure ever, released customs data showed. today is Thursday.
Customs data showed that imports of crude oil in the period from January to June rose by 11.7% to reach 282.1 million metric tons (more than two billion barrels), while exports of refined petroleum products increased during the first half of this year by 44.7 percent. % to reach 31.31 million metric tons.
However, Lv Daliang, a spokesman for the General Administration of Customs, said on Thursday that slowing global economic growth, slowing global trade and investment, and geopolitical risks still affected China’s trade.
US oil stocks
Another factor limiting the gains in oil prices was the US Energy Information Administration’s report that US oil inventories increased much more than expected by nearly 6 million barrels last week.
Price Futures Group analyst Phil Flynn said gasoline stocks remained largely unchanged at 219.5 million barrels over the July 4 weekend, which is “unheard of”.
Analysts polled by Reuters had expected a sharp drop in gasoline stocks; Where bikers took to the roads for holidays.
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