Oil Prices Rise on Falling U.S. Inventories and Chinese Imports Boost | Market Update
Oil Prices Rise today
Oil prices experienced an uptick on Thursday, fueled by declining U.S. crude inventories alongside increased refinery activity and a surge in Chinese oil imports.
Brent Crude and WTI Futures Show Gains
Brent crude futures for July climbed by 64 cents, marking a 0.8% increase to reach $84.22 per barrel, while U.S. West Texas Intermediate crude for June saw a similar rise of 66 cents, reaching $79.65 per barrel.
Analysts Weigh In on Market Dynamics
Independent market analyst Tina Teng noted that the oil market's positive momentum stemmed from a larger-than-anticipated draw in U.S. inventory data, further buoyed by favorable trade balance data from China. She suggested that future crude price movements may remain influenced by economic factors.
Decline in U.S. Crude Inventories
The Energy Information Administration reported a 1.4 million barrel decline in U.S. crude inventories to 459.5 million barrels, surpassing analyst expectations of a 1.1 million barrel draw. This drop coincided with a 307,000 barrel per day increase in refinery activity.
Increase in Gasoline and Distillate Stocks
Despite the decline in crude inventories, gasoline stocks surged by over 900,000 barrels to reach 228 million barrels, while distillate stockpiles, including diesel and heating oil, rose by 600,000 barrels to 116.4 million barrels.
Chinese Oil Imports Show Growth
Customs data released on Thursday revealed that crude shipments to China in April totaled 44.72 million metric tons, equivalent to about 10.88 million barrels per day. This marked a 5.45% increase from the previous year.
Geopolitical Tensions Offset Gains
Hopes for a ceasefire in the Israel-Hamas conflict in Gaza tempered oil price gains. The U.S. expressed optimism that negotiations could bridge the divide between Israel and Hamas. Market strategists cautioned that while short-term relief may occur, returning to April's peak levels above $90 per barrel could prove challenging given prevailing geopolitical tensions.
