{"id":6031,"date":"2023-06-15T14:28:34","date_gmt":"2023-06-15T14:28:34","guid":{"rendered":"http:\/\/roydadnaft.ir\/English\/?p=6031"},"modified":"2023-06-15T14:29:25","modified_gmt":"2023-06-15T14:29:25","slug":"oil-up-on-strong-china-refinery-data","status":"publish","type":"post","link":"https:\/\/roydadnaft.ir\/English\/6031\/","title":{"rendered":"Oil up on strong China refinery data"},"content":{"rendered":"
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Roydad Naft News Agency – Oil prices rose on Thursday after a plunge the previous day, as data showed a jump in refinery runs at the world’s top crude importer China, but a weak economic backdrop capped gains.<\/p>\n\n\n\n

Brent crude futures were up 84 cents, or 1.15%, to $74.04 a barrel at 0959 GMT. U.S. West Texas Intermediate (WTI) crude rose 77 cents, or 1.13%, to $69.04 a barrel, Reuters reported.<\/p>\n\n\n\n

Both benchmarks fell 1.5% on Wednesday.<\/p>\n\n\n\n

The market saw support after data on Thursday showed China’s oil refinery throughput in May rising 15.4% from a year earlier, hitting its second highest total on record.<\/p>\n\n\n\n

Chinese demand for oil is seen continuing to rise at an assured rate during the second half of the year, Kuwait Petroleum Corporation’s (KPC) chief executive said on Thursday.<\/p>\n\n\n\n

But a weak economic outlook weighed, as China’s industrial output and retail sales growth in May missed forecasts.<\/p>\n\n\n\n

Also capping price gains were fears that higher interest rates would slow economies in the United States and Europe, and lower oil demand.<\/p>\n\n\n\n

The U.S. Federal Reserve left interest rates unchanged on Wednesday but signalled at least half of a percentage point increase to borrowing costs by the end of this year.<\/p>\n\n\n\n

The European Central Bank is expected to increase the deposit rate by 25 basis points to 3.5% later in the day, the highest level in 22 years, and leave the door open to further hikes.<\/p>\n\n\n\n

Meanwhile, the Bank of England is set to make its monetary policy decision on June 22, with UK interest rates expected to rise above those in the United States this year.<\/p>\n\n\n\n

Analysts, however, expect oil prices to see support later in the year as voluntary cuts by OPEC+ countries implemented in May, and from Saudi Arabia in July, coincide with robust demand.<\/p>\n\n\n\n

UBS expects a supply deficit of around 1.5 million barrels per day (bpd) in June and more than 2 million bpd in July.<\/p>\n\n\n\n

“Once these deficits become visible in on-land oil inventories, we expect oil prices to trend higher,” the bank said in a note on Thursday.<\/p>\n

Updated on