- Concerns over China’s faltering growth push oil lower
- September ’23 WTI lost $1.02 this morning to trade around $81.49/Bbl
- China's economic data on Tuesday indicated that both industrial output and retail sales saw declines last month
- In response, authorities have cut key policy rates for the second time in three months to stimulate activity
- However, the weak demand is offset by OPEC+ cuts and additional voluntary cuts by Saudi and Russia through September
- Additionally, Nigeria’s Forcados terminal (0.22 MMBbl/d) resumed export operations after being halted for about a month due to leaks
- China's refinery throughput surges to a three-month high (Bloomberg)
- Chinese refiners increased throughput in July, reaching a three-month high, as state-owned plants accelerated post-maintenance and aimed to reduce their record inventory
- Even with other economic metrics underperforming, state refiners increased crude processing by 17.4% in July to 14.83 MMBbl/d due to rising fuel demand domestically and internationally
- Analysts expect a rise in China's fuel demand from August to October, driven by construction, manufacturing, and summer travel
- Global oil demand is at an all-time high, significantly driven by China's consumption, even as the country's crude output marginally increased by 1% in July, according to IEA