Crude oil prices slid in midmorning Asian trade on Monday as China’s economic recovery continues to disappoint while the U.S. dollar strengthens.
The prospects of China’s oil demand and expected further economic stimulus in the world’s top crude importer have played the biggest role in the oil price rally in July, according to Goldman Sachs.
Oil prices fell by around 1% in early Asian trade on Monday after major Libyan oilfields resumed production over the weekend following a brief shutdown and after China reported second-quarter economic growth below expectations.
Long-term contracts for LNG supply are back after a year of record-high prices and energy crises.
Oil prices fell on Tuesday morning as uncertainty around Chinese oil demand continues to grow – particularly in the near-term.
From the moment that China offered Saudi Crown Prince Mohammed bin Salman (MbS) a face-saving way out of the Saudi Aramco initial public offering disaster that he had created, as analysed in depth in my new book on the new global oil market order, the relationship between the two countries has grown ever stronger.
China added to crude oil stockpiles at the fastest rate in nearly three years in May, as robust imports outweighed near-record refinery processing.
The vast disparity between China’s oil needs to power its economy and its lack of oil reserves has meant that its economy has been a key driver for oil prices since the mid-1990s.
Kazakhstan has struck a number of deals this month to expand co-operation with China in the oil and gas industry, as Astana seeks closer ties with Beijing while reducing its reliance on Moscow. Kazakh national welfare fund Samruk-Kazyna and China’s state-owned oil company CNPC reached agreements in Astana on June 6 on jointly developing Kazakhstan’s oil and gas industry, the former reported.
GEORGETOWN, June 16, 2023 – Chinese EPC company Bomesc Offshore Engineering Company has signed a contract with Japanese shipbuilding entity MODEC to build FPSO modules for ExxonMobil’s Errea Wittu FPSO bound for Guyana, Upstream Online reported on Thursday.