Oil Prices Stable due to a Strong Demand from China

Oil prices went stable on Thursday as the concerns of ongoing fuel glut were eased by a strong demand from China.

Brent Crude futures went up by 1 cent from the last price and were at $47.75 a barrel. WTI were down by 1 cent at 45.48 per barrel from the previous closure of session.

Customs data shows China as the biggest crude oil importer and lies ahead of United States

The import data of the first six months of this year showed on Thursday revealed that China has imported 212 million ton of crude oil i.e. 8.55 million barrels per day. This is up by 13.8 percent when compared to the previous year’s same period.

This strong import data from China has eased the growing concern of ongoing excess fuel supply.

OPEC said that consumers have increasing supply choices from outside the OPEC organization

The Oil and Petroleum exporting countries organization said on Wednesday that consumers now have more choices to get a supply of crude oil from outside its member countries. It said that the world now needs 32.20 million bpd of crude from its members next year. This is a downfall of 60,000 bpd as compared to this year’s statistics.

Meanwhile OPEC raised its output by 393,000 bpd in June which resulted to 32.611 million bpd. Nigeria and Libya led this gain in crude output. This rise came despite the OPEC’s pledge on curbing the crude’s output by nearly 1.2 million between January 2017 and March 2018.

Yaron Mazor is a senior analyst at SuperTraderTV.

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