- Oil continues to trade higher amid optimism over the revival of Chinese demand
- April ’23 WTI gained 13c this morning to trade around $77.82/Bbl
- Market continues to weigh inflationary concerns with Chinese demand recovery
- China's manufacturing activity expanded at the fastest pace in more than a decade in February, signaling a further recovery in Chinese demand
- Meanwhile, this week's inflation data for Spain, France, and Germany came in stronger than expected, raising the possibility that the ECB will continue rate hikes
- Yesterday, the EIA reported that U.S. crude exports hit a record high of 5.63 MMBbl/d for the week ending February 25
- Also weighing on prices this week was a strong US dollar which makes oil expensive for holders of other currencies
- Chevron CEO backs bullish oil outlook amid Chinese demand optimism (BBG)
- China's reopening would lead to a "steady" demand rise throughout this year, and there isn't much supply outside of OPEC to match it, said Chevron’s CEO Mike Wirth
- He added, “the world’s pretty tight right now,” and “as we get into the second half of this year, the risks to the upside begin to accumulate”
- Also, he noted that the US shale production growth is slowing as a result of rising equipment costs, a labor shortage, and investor demands for funds to be utilized for buybacks and dividends rather than new drilling