- Oil fell more than 1% on Thursday amid expectations of weaker demand and a strong U.S. dollar
- The IEA forecast in its monthly report that the growth in oil demand will halt in 4Q22
- The U.S. dollar held near recent highs, supported by expectations that the U.S. Federal Reserve will keep tightening policy
- The Department of Energy said that no trigger price is included in its plan to replenish the country's emergency oil supply and that such deliveries are unlikely to start until after fiscal 2023 (BBG)
- It was reported earlier this week that the Biden administration is reportedly considering refilling the Strategic Petroleum Reserve at $80/Bbl to safeguard U.S. oil production growth and prevent a sharp decline in crude prices
- "Claims that we are currently considering buying oil once it dips below $80 a barrel are inaccurate," said DOE in a statement issued on Wednesday
- However, administration officials say that discussions of oil repurchasing are preliminary and are weighing the timing of such a move
- China may allow refiners to increase fuel exports as the nation aims to strengthen its economy following several COVID-19 lockdowns (BBG)
- Many traders and refiners have already applied for an additional 15 million tons (3.063 MMBbl) of fuel export quotas, according to people familiar with the matter
- If approved, the total amount of exports in 2022 will rise to 39 million tons (7.963 MMBbl) compared to 38.6 million tons (7.882 MMBbl) last year
- A batch of 1.5 million tons (0.306 MMBbl) will be approved possibly this week, and the additional 15 million tons (3.063 MMBbl) might be approved by the end of the month
- Meanwhile, today China plans to lift the lockdown in 17 Chengdu districts
- Six districts are still facing strict travel restrictions
- The city of 21 million people, which was mainly locked down at the beginning of the month, recorded just 29 new cases on Wednesday
- Nevertheless, authorities have tightened Covid quarantine efforts in and around Beijing ahead of a meeting of top leaders. Certain areas close to Beijing have been locked down, virus testing regulations have been tightened, and domestic travel discouraged over the next month