On July 14, oil prices slip on future demand concerns as data showed that the first-half crude imports of China dropped. But the black liquid still was holding near one-week high amid the persistence of supply concerns alongside the world economic recovery from the pandemic. Brent crude was declined 0.1%, or 8 cents, at $76.41 per barrel by 0141 GMT. It has earlier gained 1.8% on July 13. West Texas Intermediate futures were down by 13 cents, at $75.12 per barrel, or 0.2%. In the previous session, it jumped 1.6%.
The crude imports of China dropped by 3 percent from the month of January to June year-on-year. The rising prices, refinery maintenance, and import quota shortages have resulted in reduced purchases that eventually led to the first such contraction since the year 2013.
Eurasia’s Statement Over the Oil Prices
Eurasia said that the imports were scaled back due to the increase in prices for crude oil, which have eroded the profit margins of the refinery. Eurasia Group analysts also added that if OPEC+ nations do not agree to elevate the supply soon, then the high oil prices will lead to the destruction of demand in cost-sensitive emerging markets like India.
The note from Eurasia referred to the disagreement ongoing over the supply policy within the OPEC and its allies. The disagreement has left the increase of Output for August, which is just three weeks away. OPEC+ is yet to have a meeting after talks held at the month’s beginning ended without any agreement.
At the same time, the IEA or International Energy Agency said that the global withdrawals from the oil storage in the 2021 third quarter were set to be the most in a decade. It pointed to the early June stock draws from Europe, Japan, and the US. As per the American Petroleum Institute’s US crude oil supply data released on July 13, a draw of 4.079 million oil barrels for the week ended on July 9. This draw was smaller than the forecasts of Investing.com, which showed it as 4.333 million barrels.
Earlier on July 13, the oil prices rose as the expectations of downfall in US crude inventories outweighed all the Covid-19 variants’ fears of derailing the economic recovery. US crude inventories were expected to decline for an eighth consecutive week, and gasoline stocks also fell, as per the polls.