The Magazine for Asian Investors
Oil prices fell near their lowest levels in months on Monday on fears of a recession affecting demand growth.
- Brent crude futures fell 74 cents, or 0.8%, to $94.18 a barrel.
- WTI crude was at $88.34 a barrel, down 67 cents, or 0.8%.
Customs data show that China, the world’s largest crude oil importer, imported 8.79 million barrels per day in July. Those rose from a four-year low in June, but are still 9.5% below year-ago levels.
Chinese refiners have been reducing their inventories in the face of high crude oil prices and weak domestic margins. Although the country’s exports are being driven overall.
ANZ has lowered its oil demand forecasts for 2022 and 2023 by 300,000 and 500,000 barrels per day, respectively.
Oil demand is now expected to increase by 1.8 million barrels per day in 2022 compared to the previous year, and at 99.7 million barrels per day, well below pre-pandemic highs.
Despite the impending European Union sanctions, which will take effect on December 5, Russian exports of crude oil and oil products continue to flow.
In the United States, several energy companies reduced oil rig counts last week. This was the first decrease in 10 weeks.
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Monday, August 8, 2022