WTI juggles in a 103.30-103.60 range as China’s independent refineries close Russian oil deals

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.