Even with the share of renewables in electricity production rising continuously over the past years, oil remains the world’s most important energy source when factoring in transport and heating.
Despite higher oil prices and narrower discounts of Russian crudes to international benchmarks, Russia remained the single largest crude oil supplier to China in July, ahead of its OPEC+ partner Saudi Arabia, according to Chinese customs data.
Oil prices edged down on Wednesday, extending a 1% drop in the previous session, as worries about China’s struggling economy outweighed declining U.S. stockpiles.
China is expected to import as much as 1.5 million barrels per day (bpd) of crude oil from Iran in August, the highest since 2013, per estimates from data intelligence firm Kpler cited by Bloomberg.
Chinese refiners processed 17.4% more crude oil last month in response to stronger demand for fuels both at home and abroad, state statistics data cited by Reuters has shown.
Amidst a prevailing backdrop of bearish sentiments for many commodity markets throughout this year, there has been an expectation of a resurgent Chinese economy to kickstart another demand cycle and boost prices. However, China’s latest economic indicators to be published cast doubt upon the realization of this much-anticipated revival. In this week’s article, we will look at this latest round of data, the current implications on commodity prices and how this situation may develop in the near future.
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.