- Oil prices are on a rise after China hints to ship in large volumes of US crude in next two months.
- This seems to be a fitting answer to the concerns over a slowdown in demand recovery after the coronavirus pandemic and an uptick in supplies.
- Brent crude rose 21 cents, or 0.5 per cent, to $45.01 a barrel by 0023 GMT while US West Texas Intermediate crude was up 27 cents, or 0.6 per cent, to $42.28 a barrel.
The Business Standard in a recent news report reveals how China’s plans to buy oil from the U.S. has pushed the oil prices.
Tentative tankers booked
Chinese state-owned oil firms have tentatively booked tankers to transport at least 20 million barrels of US crude for August and September, Reuters reported on Friday.
China ramped up energy and farm purchases ahead of a review of the Sino-US trade deal.
Record crude imports
Record crude imports from world’s top importer China and the easing of Covid-19 restrictions globally have supported oil prices.
Although new waves of coronavirus outbreaks in several countries are expected to cool consumption again.
Demand has risen
ANZ estimated that demand has risen 8 million barrels per day (bpd) over the past four months to 88 million bpd – still 13 million bpd below this time last year.
Investors for future supply
Investors are looking for more clUSon future supply from a meeting this week of a panel representing ministers of the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+.
The meeting of the panel has been pushed back to Aug. 19, a day later than previously planned.
Joint Ministerial Monitoring Committee
The panel, called the Joint Ministerial Monitoring Committee (JMMC), monitors OPEC+ production curbs agreed earlier this year.
Last month the JMMC recommended that cUSbe eased from Aug. 1 to about 7.7 million barrels per day (bpd) from a reduction of 9.7 million bpd since May, in line with an earlier OPEC+ agreement.
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Source: Business Standard
