WTI Crude Oil Trades Mixed – China Lockdowns Offset Hopes of Rising Demand
Arslan Butt • 1 min read
WTI crude oil is exhibiting signs of mixed trading early on Friday as optimistic news about China increasing its oil imports through 2020 was offset by concerns after the country reimposed lockdowns in some cities to contain fresh outbreaks of coronavirus. At the time of writing, WTI crude oil is trading at around $53.47 per barrel.
During the previous session, WTI crude oil prices strengthened by over 1% over hopes of improvement in oil demand after crude stockpiles in the US registered a greater than expected decline even as China’s oil imports increased in 2020 despite the pandemic. In addition, news about the rollout of COVID-19 vaccines and Saudi Arabia’s decision to implement deeper supply cuts have also been providing support to oil prices in recent sessions.
Oil markets are also hopeful about President elect Joe Biden’s plans for additional stimulus measures to boost the US economy. On Thursday, Biden laid out his plans for more fiscal stimulus worth $1.9 trillion, which could potentially help boost oil demand in the world’s largest energy consumer.
However, the cautiously optimistic sentiment among oil traders has suffered after China reported a spike in the number of fresh coronavirus cases and announced a lockdown across several parts of the country. The country where the outbreak initially began confirmed its first death due to coronavirus in eight months, raising concerns of the economic rebound that was underway getting affected.