- Oil trades lower as Libya’s production resumes and weak China data
- August ’23 WTI lost 98c this morning to trade around $74.44/Bbl
- China's Q2 GDP rose by just 0.8% from Q1 due to weakening domestic and international demand, increasing pressure for more stimulus (Reuters)
- Although year-on-year GDP grew 6.3% in Q2, it fell below the expected 7.3%, underscoring recovery and unemployment challenges
- Libyan oilfields' output resumption over the weekend also weighed on prices
- However, Nigeria’s Forcados terminal (0.23 MMBbl/d) remains halted since July 12
- Additionally, the U.S. dollar continues to trade at its lowest since April 2022, making dollar-denominated commodities cheaper for holders of other currencies
- Libya’s oil fields resume operations as protests end (BBG)
- As protests end, Libya's Sharara and El Feel oil fields started gradually resuming their 0.33 MMBbl/d capacity, alleviating market supply worries
- However, recurring disruptions highlight the instability and risks to Libya's oil production
- Saudi oil exports and production plunge in May (JODI)
- Saudi Arabia's crude oil exports dropped by 0.39 MMBbl/d to 6.93 MMBbl/d in May
- Concurrently, Saudi production fell by 0.5 MMBbl/d to 9.6 MMBbl/d in May, aligning with its OPEC+ pledge, according to IEF
- Furthermore, an extended cut of 1 MMBbl/d is pledged for July and August
- China’s crude output reaches its highest since 2015 (BBG)
- Amid a drive for energy security, China's crude oil output in H1 2023 rose to 4.25 MMBbl/d, its highest since 2015
- Meanwhile, China's apparent oil demand in June reached 14.87 MMBbl/d, a 14% year-over-year increase, while refining rates rose to 14.89 MMBbl/d, up 1.6% from May