- Oil trades lower for a second day despite China’s strong economic data
- May ‘23 WTI fell 32c this morning to trade around $80.51/Bbl
- China’s economy expanded by 4.5% in the first quarter, surpassing expectations
- However, oil prices continue to face downward pressure from the strengthening U.S. dollar
- Kurdish oil exports (0.45 MMBbl/d) remained halted since March 25 as Iraq negotiates with Turkey
- Meanwhile, Russia’s crude exports bounced back above 3 MMBbl/d last week, despite Moscow saying it had lowered output
- China’s refinery throughput hits a record high (BBG)
- China's oil refineries processed a record 14.97 MMBbl/d of crude in March 2023, an 8.8% YoY increase, the highest daily volume on record
- China, the world's largest crude importer, is expected to drive the majority of crude demand growth in 2023
- Refiners met the higher demand for gasoline and jet fuel by increasing production, but processing rates may decrease in April and May due to seasonal maintenance
- However, the summer travel season could lead to a substantial rise in fuel demand