2023-08-11 07:00:00
OIL PRICE: BRENT ABOVE $86, WTI ABOVE $82
REUTERS - Aug 11, 2023 - Oil prices were largely unchanged in Asian morning trade as investors weighed optimistic demand forecasts from the OPEC producer group against mixed economic data in top importer China.
Brent crude fell 4 cents to $86.36 a barrel at 0310 GMT, while U.S. West Texas Intermediate crude futures were down 2 cents at $82.80 a barrel.
Both benchmarks have been on a sustained rally since June, with West Texas Intermediate crude (WTI) trading on Thursday at its highest this year and Brent hitting its best price since January.
"Oil markets may have been overbought from a multi-week rally, though OPEC+ output cuts and improved demand outlooks remained bullish factors," said Tina Teng, a market analyst at CMC Markets in Auckland.
The Organization of the Petroleum Exporting Countries said on Thursday it expects world oil demand to rise by 2.25 million barrels per day (bpd) in 2024, compared with growth of 2.44 million bpd in 2023. Both forecasts were unchanged from last month.
In 2024, "solid" economic growth amid continued improvements in China is expected to boost oil consumption, it added.
Market sentiment was also lifted by Thursday's U.S. consumer prices data for July, which fuelled speculation the Federal Reserve is nearing the end of its aggressive rate hike cycle.
However, Teng also noted that "China’s sluggish economic data and the retreat on Wall Street weighs on risk sentiment, and a strengthened USD also pressured commodity prices".
While customs data showed crude imports up year-on-year, China's overall exports plunged 14.5% on last year, with monthly crude imports retreating from June's near-record highs to the lowest levels since January.
Data this week also showed China's consumer prices fell into deflation and factory gate prices extended declines in July, raising concerns about fuel demand in the world's second-largest economy.
On the supply side, prices have been supported by extensions to output cuts by Saudi Arabia and Russia, alongside supply fears driven by the potential for conflict between Russia and Ukraine to disrpupt Russian oil shipments in the Black Sea region.
Baden Moore, head of commodity and carbon strategy markets at National Australia Bank said crude markets were likely to show a supply deficit through the second half of this year, but it would by less OPEC's forecast for a deficit of around 2 million barrels a day in the September quarter.
"Although our supply deficit forecast is lower, we expect it is enough to push prices over US$90/bbl through 2H23," Moore added.
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Earlier:
2023, August, 4, 07:00:00
OIL PRICE: BRENT ABOVE $85, WTI NEAR $82
Brent rose 10 cents, or 0.1%, to $85.24 a barrel, WTI rose 17 cents, or 0.2%, to $81.72.
2023, August, 4, 06:55:00
RUSSIAN OIL CAP
The G7, the European Union and Australia imposed the $60 per barrel cap last December on sea-borne exports of Russian crude in retaliation for Russia’s war on Ukraine.
2023, July, 28, 07:00:00
OIL PRICE: BRENT NEAR $84, WTI NEAR $80
Brent fell 42 cents, or 0.5%, to $83.82 a barrel, WTI fell 34 cents, or 0.4%, to $79.75 a barrel.
2023, July, 21, 07:00:00
OIL PRICE: BRENT ABOVE $80, WTI NEAR $76
Brent rose 63 cents to $80.27 a barrel, WTI climbed 62 cents to $76.27 a barrel.
2023, July, 14, 07:00:00
OIL PRICE: BRENT ABOVE $81, WTI NEAR $77
Brent had added 5 cents, or 0.1%, to $81.41 per barrel, WTI rose 9 cents, or 0.1%, to $76.98.
2023, July, 14, 06:55:00
OIL PRICES 2023-24: $80 - $84
The Brent crude oil spot price will average $80 per barrel (b) in 4Q23 and $84/b in 2024.
2022, December, 13, 13:55:00
RUSSIAN OIL TO ASIA 3 MBD
Export loadings of Russian crude averaged 3.02 million b/d in the week ending Dec. 11, little changed from the week before and in line with the November average of 3.07 million b/d
