Title: Oil Prices Mixed as China Considers Cutting Lending Standards
Date: June 20, 2023
Source: Reuters
Oil prices experienced a mixed performance on Tuesday as investors awaited China’s decision on lending standards, which is widely expected to be a cut aimed at supporting a slowing economic recovery. The price of oil rose by three cents to $76.12 per barrel at 0041 GMT, while US WTI remained unchanged at $71.29. However, there was no settlement on Monday due to a public holiday in the US.
The WTI contract due on July 20 fell by 58 cents to $71.35 per barrel. A recent Reuters survey indicated that China is likely to implement a significant easing of lending standards, marking the first such move in 10 months. This decision comes in response to recent economic data that revealed struggles in the retail and factory sectors, threatening to undermine the momentum achieved earlier in the year.
Concerns over China’s stimulus measures have impacted market sentiment, as doubts arise regarding their effectiveness in stimulating economic growth. The Chinese government held discussions last week to explore measures aimed at boosting the economy. Several major banks have also revised their economic growth forecasts for 2023, expressing fears that the post-COVID-19 recovery may falter.
In terms of oil supply, Iran’s oil exports and production have reached new highs in 2023, despite facing US sanctions. Additionally, Russia is expected to increase its exports of seaborne diesel and gasoil this month, surpassing the cuts made by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Moscow itself.
JPMorgan recently adjusted its average Brent crude price estimate for this year from $90 to $81 per barrel. The bank’s analysts believe that the current OPEC+ production cuts are insufficient to balance global supply and demand, even if extended until 2024.
In conclusion, oil prices remain uncertain as China’s decision on lending standards looms. The market is closely watching for any signs of economic stimulus measures that could impact global oil demand and supply dynamics. Factors such as Iran’s oil exports, Russia’s increasing exports, and the effectiveness of OPEC+ production cuts will continue to influence oil prices in the coming months.
Brent oil price Live
Title: China’s Potential Lending Standards Cut Creates Mixed Outlook for Oil Prices
Date: June 20, 2023
Source: Reuters
Oil prices displayed a mixed performance on Tuesday, with investors eagerly awaiting China’s decision on potential lending standards. It is widely anticipated that China will implement a cut, aiming to provide support to its slowing economic recovery. At 0041 GMT, the price of oil rose by three cents to reach $76.12 per barrel, while US WTI remained unchanged at $71.29. However, no settlement was reached on Monday due to a public holiday in the US.
The WTI contract due on July 20 experienced a decline of 58 cents, dropping to $71.35 per barrel. A recent Reuters survey suggests that China is likely to significantly ease lending standards, marking the first such move in 10 months. This decision comes in response to economic data indicating struggles in the retail and factory sectors, which pose a threat to the momentum achieved earlier this year.
Market sentiment has been influenced by concerns over the effectiveness of China’s stimulus measures in stimulating economic growth. Doubts have arisen regarding their impact. In response to recent economic challenges, the Chinese government held discussions last week to explore measures aimed at boosting the economy. Several major banks have also revised their economic growth forecasts for 2023, expressing fears that the post-COVID-19 recovery may falter.
Considering the oil supply, Iran has managed to reach new highs in both oil exports and production in 2023, despite facing US sanctions. Furthermore, Russia is expected to increase seaborne diesel and gasoil exports this month, surpassing the cuts made by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Moscow itself.
Taking these factors into account, JPMorgan has recently adjusted its average Brent crude price estimate for this year from $90 to $81 per barrel. The bank’s analysts believe that the current production cuts implemented by OPEC+ are insufficient to balance global supply and demand, even if extended until 2024.
In conclusion, the uncertainty surrounding oil prices persists as China’s decision on lending standards looms. The market is closely monitoring any potential economic stimulus measures that could impact global oil demand and supply dynamics. Additionally, factors such as Iran’s oil exports, Russia’s increasing exports, and the effectiveness of OPEC+ production cuts will continue to exert influence on oil prices in the coming months.
