Oil’s roundtrip back to $100. Why China could determine what happens next
China will play a pivotal role in deciding whether oil prices sustain this week’s rally and potentially test wartime highs. The U.S. crude oil price on Thursday topped $102 per barrel for its highest close since May. The futures contract surged about 50% from its summer low of $68.55 reached about three weeks after Washington ...
Oil prices have soared back to $100 per barrel, with futures contracts surging by around 50% from their summer low. This rally comes amid escalating fighting in the Middle East, following the failed memorandum of understanding between the U.S. and Iran. U.S. crude prices are still well below their wartime peak of $112.95. China, as a crucial swing consumer, has played a pivotal role in containing prices by slashing imports to just 3-5 million barrels per day.
While Beijing has a massive petroleum reserve and is starting to bid up crude, its crude purchases are not expected to return to prewar levels. Instead, Chinese refiners are keen to re-enter the market, taking advantage of soaring profit margins for diesel production. Despite this, oil prices are trending higher as global inventories dwindle and the end of emergency stockpile releases approaches.
Written by urgent.news from Hellenic Shipping News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.