Oil up after Chinese data and reports on OPEC + production

Oil prices, especially Brent crude, witnessed an increase during trading today, Monday, as fears of a scarcity in the global supply of crude oil dominated investor sentiment after the release of some data on customs in China, as well as preliminary reports on OPEC + production.

According to Reuters, Brent oil prices rose by 1.11% to reach $85.81 a barrel, and US West Texas Intermediate crude futures rose by 1.28%, recording $81.69 a barrel, while trading on spot contracts for West Texas crude remained stable at a time when Brent crude spot prices rose, in light of tight near-term deliveries

China’s customs data released today showed that oil shipments to China from the Kingdom declined during the previous month of July, while Russian oil imports to China – the largest importer of crude oil in the world – remained the highest among Chinese oil imports, in light of oil prices. The discount that Russia maintained in its dealings with China and India

In light of China’s endeavor to support the momentum of domestic economic growth, the Chinese authorities continued to push economic stimulus to achieve the growth goal, the latest of which was the decision of the People’s Bank of China today to cut the country’s fourth main interest rate, as it cut the initial interest rate on lending by 10 basis points. ..

Today’s Chinese oil import data raised investors’ concerns about the scarcity of the global supply of crude oil in global markets, especially in light of the release of export data in China, which showed that Chinese refineries boosted exports of refined petroleum products during the month of July, driven by margins. Strong exports

In the United States, the Baker Hughes report last Friday showed a decrease in the number of operating oil rigs during the past week by 5 rigs to 520, which is an early indicator of future production trends, and this was the lowest level since March 2022, which put pressure on crude prices. West Texas American mediator and limited its profits.

The decline in the US dollar today – after its 5-week winning streak until the end of last Friday’s session – helped clear some room for dollar-priced oil, as it made it less expensive for investors holding other currencies.

On the supply side, markets have come to expect a decrease in OPEC + exports of crude oil for the second month in a row during August, after the preliminary data released by the Kpler shipping tracking platform during the first half of the month, which showed a clear decline in the exports of the OPEC countries.