info@marketresearchfuture.com   📞  +1 (855) 661-4441(US)   📞  +44 1720 412 167(UK)

Oil Prices Drop On Uncertainty Over Chinese Demand

By Garvit Vyas , 08 November, 2022

Prices of oil dropped more than $1 a barrel on Monday as Chinese health officials' reiterated their dedication to a strict COVID management strategy, shattering expectations for a recovery in oil demand from the largest crude importer in the world.

After reaching a low of $96.50 earlier, Brent crude futures decreased $1.20, or 1.2%, to $97.37 a barrel. Earlier in the day, U.S. West Texas Intermediate oil hit a session low of $90.40 per barrel before falling to $91.24 per barrel, down $1.37, or 1.5%.

The Chinese health authorities asserted, at a news conference on Saturday that they would continue to treat COVID cases according to their "dynamic-clearing" strategy as soon as they appeared. Chinese health authorities committed to maintaining the nation's zero-tolerance policy, which attempts to eradicate Covid infections as soon as they occur.

The first concurrent decline in China's exports and imports since May 2020 occurred in October as a result of an unfavourable confluence of domestic COVID restrictions and risks associated with a potential global recession, which further dimmed the outlook for the country's already precarious economy.

The amount for the first 10 months was still 2.7% lower than the same time a year earlier, at 413.53 million tonnes or 9.93 million bpd, despite China's imports of crude oil rising to their highest level since May.

Despite the fact that refineries throughout the world are increasing capacity, the price of oil has been bolstered by anticipation of tighter supply as a result of the European Union's embargo on Russia's seaborne crude shipments beginning on December 5.

World Oil Demand Growth Forecast, y/y Changes (million b/d)

Forecast.png

Latest News

period.png
Packaging Manufacturer Collabs with Solar Projects to Enhance Cleantech in 2024

Companies are making significant moves towards the clean energy transition in various ways. In order to reduce carbon emissions, certain companies are investing in several rescue methods in 2024. Renewables production is growing over time as the…

Read More

Amazon.png
Amazon Enables News Technologies to Help its Business Customers

Amazon is one of the leading global e-commerce platforms for consumers. The brand boosts its online shopping experience for users in multiple ways. Surveys show that Amazon regulates several business solutions to increase its products and services…

Read More

2023.png
Asian Carbon Emissions Affects West’s Clean Energy Transition Process in 2024

Globally, countries are facing challenges in the transformation of green energy. The economies worldwide target to achieve net zero emissions. Hence, countries are introducing several ways to reduce environmental carbon emissions. Developing…

Read More

2023.png
China to Boost Oil and Gas Production from New Sources in 2024

China is the leading nation in the energy market. Since the clean energy transition focuses on renewables, China surpasses other nations in renewables production. In a mission to strengthen its energy security, China moves forward with oil and gas…

Read More

market.png
China Copper Export Increases in the Global Market

There will be a surge in copper demand in the energy market in 2024. The growing demand for copper contributes to different usages in the energy market. China stands out in the copper exports of 2024. The Chinese economy is booming, with an…

Read More

Author Pic
Garvit Vyas

Analyst