Oil Slides More Than 1% as Chinese GDP Dents Demand Hopes
07.17.2023 By TankTerminals.com News - NEWS

July 17, 2023 [Reuters]- Oil dropped by more than 1% on Monday after weaker than expected Chinese economic growth fuelled concern over demand in the world’s second-biggest oil consumer while a partial restart of halted Libyan output also pressured.

 

China’s gross domestic product (GDP) grew 6.3% year on year in the second quarter, compared with analyst forecasts of 7.3%, with its post-pandemic recovery faltering rapidly owing to weakening demand at home and abroad.

“The GDP came in below expectations, so will do little to ease concerns over the Chinese economy,” said Warren Patterson, ING’s head of commodities research.

Brent crude fell $1.39, or 1.7%, to $78.48 a barrel by 1015 GMT and U.S. West Texas Intermediate crude dropped by $1.34, or 1.8%, to $74.08 on a second straight day of losses for both contracts.

“China data was always looked forward to with a degree of hope; well, for bulls anyway,” John Evans of oil broker PVM said in a report. “However, the contemporary economic backdrop for Asia’s driver seems to now be wheeled out for the bears.”

Oil briefly rose after a Reuters news alert on Saudi Arabia extending a voluntary output cut. The alert was subsequently withdrawn because it repeated news published on June 4.

Both benchmarks had notched three weeks of gains and touched their highest since April last week, finding support from OPEC+ output curbs and unplanned outages in Libya and Nigeria.

Oil also came under pressure on Monday from the resumption of output at two of the three Libyan fields that were shut last week. Output had been halted by a protest against the abduction of a former finance minister.

In another sign of tighter supplies, Russian oil exports from western ports are set to fall by 100,000-200,000 bpd next month, a sign that Moscow is making good on a pledge for supply cuts in tandem with Saudi Arabia, two sources said on Friday.

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

Tangier Island Awarded $2.3 Million Grant for Fuel Storage
06.20.2024 - NEWS
June 20, 2024 [National Fisherman]- Tangier Island, Va., sits in the middle of Chesapeake Bay wit... Read More
Sweco Supports VoltH2 in Design and Development of New Green Hydrogen Plant in The Netherlands
06.20.2024 - NEWS
June 20, 2024 [Public Now]- The European energy company VoltH2 has selected Sweco as its partner ... Read More
ONEOK Completes Acquisition of Gulf Coast NGL System
06.20.2024 - NEWS
June 20, 2024 [ONEOK]- ONEOK, Inc. announced that it has completed its acquisition of a system of... Read More
Phillips 66 Refining Margins Tighten on TMX Expansion Start-Up
06.20.2024 - NEWS
June 20, 2024 [Market Screener]- U.S. refiner Phillips 66 said on Tuesday its margins have tighte... Read More