WTI juggles in a 103.30-103.60 range as China’s independent refineries close Russian oil deals
|- WTI oscillates in a tight range as China’s oil purchase from Russia eases supply concerns.
- Lower oil stockpiles in the US could postpone the decision of an embargo by Europe.
- The API reported a fall in the oil inventories by 3.5 million barrels.
West Texas Intermediate (WTI), futures on NYMEX, is oscillating in a narrow range of 103.33-103.59 on easing supply concerns. China’s independent refineries have started importing oil from Russia at a steep discount, as per Financial Times. It looks like the commodity traders in China have a veto on the sanctions imposed on Russia by the Western leaders after its invasion of Ukraine.
It is worth noting that China is the biggest importer of oil in the world and the resumption of oil imports from Russia by the dragon economy will weigh pressure on the oil prices. Earlier, demand worries from China on the resurgence of the Covid-19 in Shanghai and Beijing were impacting the oil prices. Now, the multiplier effect from increasing demand worries and easing supply concerns will keep the oil prices in check.
Meanwhile, oil stockpiles reported by the American Petroleum Institute (API) have fallen by 3.5 million barrels against the forecast of a buildup of 4.5 million barrels. Lower oil inventories in the US are an outcome of the higher exports of oil by the US recently. The US administration has turned out as an exporter of oil as its exports remained higher by three million barrels daily last month against its imports. This has provided some cushion to the oil prices. Going forward, investors will keep an eye on the OPEC meeting, which is due on Thursday. The OPEC cartel is expected to reduce oil production in order to keep the oil prices above $100.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.