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17/06/24
13
Crude Prices Higher as Downbeat China Data Is Offset by Summer Demand Hopes
On Monday, crude prices inched higher as Chinese data that underlined a bumpy recovery for the largest crude importer in the world was offset by hopes that demand from the summer driving season in the northern hemisphere would be boosted.
On Monday, the flurry of Chinese data was generally downbeat apart from retail sales that beat forecasts due to a boost by holidays. The data came after Friday’s survey that showed U.S. consumer sentiment in June dropped to a 7-month low.
Brent crude futures were 33 cents, or 0.4% higher, at $82.95 per barrel while U.S. West Texas Intermediate crude futures rose 25 cents, or 0.3%, at $78.70 per barrel.
Both benchmarks last week posted their first weekly rise in 4 weeks on increased confidence that oil inventories were likely to plunge during the summer season in the northern hemisphere amid continued supply cuts by OPEC+.
According to Saudi Arabia, OPEC+’s planned increase in output for the fourth quarter may be paused or reversed if required. Last week Iraq and Russia, which have been delivering more than their OPEC+ quotas, promised to meet their obligations.
Last week, reports from the International Energy Agency and OPEC supported confidence that inventories would decline in the second half.
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