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Oil Prices Rally as EIA Boosts US Economic Outlook

Crude oil demonstrated resilience and ended on a higher note on Tuesday, August 8, powered by an upward revision of the United States Energy Information Administration (EIA) to its economic projections for the nation. Nonetheless, oil markets experienced intraday pressures stemming from China’s concerning revelations about plummeting exports and imports.

In a positive move, WTI crude futures witnessed a climb of 98 cents (1.2%), ultimately settling at $82.92 per barrel. Correspondingly, BRENT crude futures edged up by 83 cents (1%), concluding the session at $86.17 per barrel.

The driving force behind the upward trajectory of crude oil prices was the EIA’s decision to enhance its economic growth projection for the United States in 2023. The revision saw the figure rise to 1.9%, up from the earlier forecast of 1.5%. Furthermore, the EIA anticipated a noticeable increase in the average Brent crude price during the latter half of 2023. The new projection places the average at $86 per barrel, a notable $7 higher than the previous estimation.

However, the day did not proceed without challenges. Both WTI and Brent crude futures faced a temporary setback of around 2% each, a response to China’s release of trade data by its Customs Administration (GAC). Notably, July’s total exports tumbled by 14.5% year-on-year, marking the steepest decline since February. Market expectations had centered around a more moderate 12.5% drop. Import figures painted a similar story, as the actual decline of 12.4% surpassed analysts’ predictions of a 5% decrease.

Furthermore, China’s crude oil imports for July followed a fluctuating pattern, with a 18.8% month-on-month decline but a robust 17% uptick in annual comparison.

As market participants continue to monitor developments, attention is firmly fixed on the imminent release of the weekly crude stock data by the EIA, scheduled for approximately 9:30 PM Thai time. This report is poised to provide further insights into the current state of the oil market and could potentially influence trading dynamics.

In conclusion, the oil market’s ability to finish on a higher note was underpinned by the EIA’s improved US economic forecasts. This development injected positivity into the market, countering the pressures stemming from China’s trade data disclosures. As oil prices respond to a complex blend of economic projections, global events, and market sentiment, investors remain vigilant for further cues from both domestic and international sources.

The Spot Market is Open

Wednesday, August 9, 2023

Updated at


Crude Oil




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