Oil Claws Back Above $80 a Barrel as Tight Supply Reclaims Focus
08.19.2023 By Tank Terminals - NEWS

August 19, 2023 [Yahoo Finance]- Oil rebounded from a three-week low as tightening supplies took center stage, at least temporarily sidelining the concerns about the Chinese economy and US monetary policy that had spurred a three-day drop.


West Texas Intermediate settled above $80 a barrel after shedding 4.6% this week through Wednesday. Physical markets across the globe have shown signs of robust demand, US commercial oil inventories are at the lowest since January and importers in Asia have been on a crude-buying spree. The backwardation in the forward curve for WTI widened, indicating tightness for near-term deliveries.

However, looming over the rebound are worries about top oil importer China’s post-pandemic recovery, with authorities said to have told state-owned banks to step up currency intervention. Liquidity remains thin, and volatility gauges are muted, reflecting low trading interest, market participants said.

“In the near-term, we don’t expect significant flows from trend followers, suggesting price action may remain broadly range-bound for the time being,” said Daniel Ghali, senior commodity strategist at TD Securities.

In the US, Federal Reserve officials remained concerned at their July policy meeting that inflation would fail to recede and that further interest rate hikes could be needed, according to minutes from the gathering. Higher borrowing costs may hurt energy demand, while supporting gains in the US dollar.

With prices slipping from multi-month highs in recent days, Citigroup Inc. urged investors to sell oil into the winter, given the likelihood of soft demand and ample supply.

“The oil market has been unable to escape broader market concerns following a raft of weaker-than-expected Chinese macro data this week,” said Warren Patterson, head of commodities strategy at ING Groep NV. “However, we remain constructive on oil, given the expectation that fundamentals will continue to tighten due to ongoing supply cuts from OPEC+.”


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

ExxonMobil Expands Chemical Production at Baytown
09.21.2023 - NEWS
September 21, 2023 [ExxonMobil]- ExxonMobil today announced the startup of two new chemical produ... Read More
Belvedere Terminals Ups its Planned Investment to $750 Million in Florida
09.21.2023 - NEWS
September 21, 2023 [Observer]-Belvedere Terminals announced Tuesday that it plans to build a tota... Read More
Oil Must Play Major Role in Global Energy Transition, Exxon, Aramco CEOs Say
09.21.2023 - NEWS
September 21, 2023 [Oil & Gas 360]- The heads of Saudi Aramco and Exxon Mobil Corp. took to t... Read More
JERA Global Markets Sells Terminal in the Port of Amsterdam to Rhenus Group
09.21.2023 - NEWS
September 21, 2023 [Port News]- JERA Global Markets Pte. Ltd. and the Rhenus Group jointly announ... Read More