China oil import cut, higher U.S. exports wrongfoot market bulls
The global oil market has experienced a significant shift as prices have fallen from record highs despite ongoing supply disruptions. Chinese refiners have reduced imports and production, leading to a decrease in global demand. Meanwhile, U.S. exports have increased, helping to stabilize the market amidst the conflict in the Middle East.
- ▪Crude oil prices have dropped to between US$100 and US$110 per barrel after reaching over US$160 last month.
- ▪Chinese refiners cut their production by nearly 20 percent and reduced net seaborne crude imports by 5.5 million bpd.
- ▪U.S. crude exports rose to 13 million bpd in early May, up from 11.2 million bpd in March.
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ShareSave for laterPlease log in to bookmark this story.Log InCreate Free AccountAs prices for physical crude oil hit all-time highs of over US$160 per barrel last month, analysts and traders alike rushed to predict a market Armageddon if the U.S.-Iran war dragged on and the Strait of Hormuz stayed closed.Five weeks later, with the strait still largely shut and peace talks at an impasse, prices have not risen but have instead fallen to US$100-US$110 a barrel. The fall was driven by several factors: Chinese refiners slashed refining runs and also reduced imports and instead used crude from their storage tanks.
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