June 19, 2023 [Knowledia]- Crude prices recouped losses on Thursday and continue to gain on Friday as traders see improving U.S. crack spreads and an increase in refinery runs in China as bullish news.
China’s oil refinery throughput also played a crucial role in the market rally. Data showed a significant 15.4% year-on-year increase in refinery throughput in May, reaching its second-highest level on record. Analysts expect…
Additionally, reports from the U.S. revealed an unexpected increase in retail sales for May and higher-than-expected jobless claims, leading to a weakening of the U.S. dollar. A weaker dollar makes crude oil more affordable for holders of other currencies, stimulating oil demand.
The bullish sentiment in the oil market was supported by multiple supply and demand factors. Firstly, the gasoline crack spread, which measures refining profit margins, reached its highest level since July 2022 in the United States. This is indicative of strong demand for gasoline relative to the cost of crude oil. The high crack spread incentivizes refiners to increase gasoline production, driving up the demand for crude oil as feedstock and ultimately boosting oil prices.
September West Texas Intermediate (WTI) crude oil futures experienced another volatile week, culminating in a 3% increase to reach a one-week high on Thursday. Several factors contributed to this rise, including a weaker U.S. dollar and a significant surge in refinery runs in China, the world’s top crude oil importer. This positive performance helped the market recover from earlier losses, which puts it in a position to end the week on an upward trajectory.
September West Texas Intermediate (WTI) crude oil futures experienced another volatile week, culminating in a 3% increase to reach a one-week high on Thursday. Several factors contributed to this rise, including a weaker U.S. dollar and a significant surge in refinery runs in China, the world’s top crude oil importer. This positive performance helped the market recover from earlier losses, which puts it in a position to end the week on an upward trajectory.
Pro Trial: Access 12,600 Tank Terminal and Production Facilities
12,600 tank storage and production facilities as per the date of this article. Click on the button and register to get instant access to actionable tank storage industry data
Pro Trial: Access 12,600 Tank Terminal and Production Facilities
12,600 tank storage and production facilities as per the date of this article. Click on the button and register to get instant access to actionable tank storage industry data
