WTI Crude Oil Makes Gains as China Gets Ready to Buy More US Crude
WTI crude oil prices are making gains, buoyed by reports that China is expected to increase its imports of US crude during August and..
As a new trading week begins, WTI crude oil prices are making gains, buoyed by reports that China is expected to increase its imports of US crude during August and September. At the time of writing, WTI crude oil is trading at around $42.33 per barrel.
According to latest news reports, Chinese state-owned oil companies are expected to purchase at least 20 million barrels of crude oil from the US this month and during the next. China’s decision to increase oil imports was possibly driven by the Trump administration’s decision to conduct a six-month review of the progress on the phase one trade deal signed earlier this year.
The news has brought back some cheer to oil markets that were under pressure over rising concerns about the coronavirus pandemic and its impact on oil demand, even as countries emerged out of lockdown. The possibility of reimposition of lockdown restrictions due to a resurgence in cases across regions was keeping crude oil prices bearish lately.
Crude oil prices are enjoying support from the improvement in demand worldwide as governments ease lockdown measures and allow normal activities to resume. As per estimates by ANZ, oil demand has increased by 8 million bpd over the past four months to touch 88 million bpd. However, this is still less than the levels of oil demand seen during the same time last year.
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