Oil prices entangled between China’s lockdown & EU’s Russian oil ban

Image Source: © Lancemichaels | Megapixl.com

Highlights

  • Crude oil prices rose on Wednesday.
  • The American Petroleum Institute showed that crude stocks fell by 3.5 million barrels for the week ended 29 April.
  • China's calm demand is a real concern, investors are wondering whether it will pick up in 2022 or not.

Crude oil prices tumbled by more than 2% on Tuesday due to lower energy demand in China amid prolonged COVID-19 related lockdowns. However, the oil prices rose at the start of Asian trade on Wednesday following the release of industry data showing drawdowns in U.S. crude and fuel stockpiles, raising supply concerns.

During the start of the week, crude oil prices tumbled after China published its factory activity data on Saturday stating that the country’s economy contracted for a second month to its lowest since February 2020 because of COVID-19 lockdowns.

Talking about last week, the prices of both crude oil benchmarks rose more than 3% as China’s central bank said that it will pump the country's monetary policy to support the economy which would ultimately boost oil demand.

Also Read: Crude oil surges to 14-year highs on delays in Iranian talks

On Tuesday, Brent Crude oil settled at US$104.97/bbl, down 2.4%, and WTI crude oil settled at US$102.41/bbl, down 2.6%.

Source: Refinitiv Eikon

On Wednesday, July delivery Brent Crude oil futures gained and last traded at US$105.84 per barrel up 0.83%, while June delivery WTI crude oil futures exchanged hands at US$103.36 per barrel, down 0.93% at 12:20 AM AEST.


 


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