{"id":6125,"date":"2023-06-20T13:00:35","date_gmt":"2023-06-20T13:00:35","guid":{"rendered":"http:\/\/roydadnaft.ir\/English\/?p=6125"},"modified":"2023-06-20T13:03:04","modified_gmt":"2023-06-20T13:03:04","slug":"oil-rises-as-chinese-economic-indicators-offer-mixed-picture","status":"publish","type":"post","link":"https:\/\/roydadnaft.ir\/English\/6125\/","title":{"rendered":"Oil rises as Chinese economic indicators offer mixed picture"},"content":{"rendered":"
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Roydad Naft News Agency – Oil prices rose on Tuesday after China cut benchmark lending rates in a potential boost to growth but oil demand was seen rising less than expected this year, in a mixed picture for consumption by the world’s largest crude importer.<\/p>\n\n\n\n

Brent crude was up 69 cents, or 0.9%, at $76.78 a barrel at 1226 GMT. U.S. West Texas Intermediate (WTI) crude for July was down 3 cents from Friday’s close at $71.75. The July contract expires at the end of trade on Tuesday.<\/p>\n\n\n\n

The more active WTI crude contract for August delivery was up 10 cents from Friday at $72.03 per barrel. There was no settlement in the WTI contract on Monday due to a public holiday in the United States.<\/p>\n\n\n\n

China on Tuesday\u00a0cut two benchmark lending rates\u00a0by 10 basis points each. The cuts, the first in 10 months, were less aggressive than some forecasts.<\/p>\n\n\n\n

“Oil traders may need to see a materialised strong economic rebound in China to improve their outlook on oil demand,” said Tina Teng, a markets analyst at CMC Markets in Auckland.<\/p>\n\n\n\n

The rate reductions follow recent economic data that showed China’s retail and factory sectors are struggling to sustain the momentum seen earlier this year.<\/p>\n\n\n\n

While China’s 2023 crude oil demand is expected to\u00a0rise 3.5%\u00a0on last year, a researcher at China National Petroleum Corporation’s (CNPC) research arm said on Tuesday, down around 1% from a previous estimate in March.<\/p>\n\n\n\n

Meanwhile China’s fuel oil imports eased slightly in May after hitting a decade-high in April.<\/p>\n\n\n\n

The Chinese government met\u00a0last week\u00a0to discuss measures to spur growth in the economy, and several major banks have\u00a0cut their 2023 economic growth forecasts\u00a0for China amid concerns its post-COVID recovery is faltering.<\/p>\n\n\n\n

Higher interest rates reduce appetite for spending and can drive down oil demand.<\/p>\n\n\n\n

On the supply side, Iran’s crude exports and oil output have\u00a0hit new highs\u00a0in 2023 despite U.S. sanctions.<\/p>\n\n\n\n

Russia is also set to increase seaborne diesel and gasoil exports this month, outweighing cuts by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Moscow itself.<\/p>\n

Updated on