Brent continues to gain in trade
The front-month ICE Brent contract has gained by $0.99/bbl, to $77.26/bbl at 09.00 GMT.
PHOTO: Getty Images
Upward pressure:
The US Energy Information Administration (EIA) has maintained its global liquid fuel demand forecast for 2023. In its latest monthly report, the watchdog predicts consumption will still reach 100.9 million b/d this year and 102.7 million b/d in 2024, led by China and India.
The EIA reaffirming its 2023 and 2024 demand forecasts gives the markets some hope that China's oil demand can rebound this year, alongside optimism that India could bolster its crude imports.
Downward pressure:
Commercial US oil inventories have gained by 2.95 million barrels on the week, to 462.58 million barrels on 5 May, according to US EIA data.
The build in US crude inventories “comes amid an uncertain economic backdrop,” says ANZ commodity strategist Daniel Hynes. “While US inflation eased more than expected in April, there are fears the impact of recent rate hikes are only now surfacing in the US economy.”
Meanwhile, in China, peak refinery maintenance contributed to a 16% decline in oil imports in April, per a report by market intelligence provider JLC.
“The month-on-month slump was mainly because March imports rose to an unusually high level, amid delayed customs declarations of some cargoes from the first two months of the year,” JLC stated. It expects a modest increase in May's crude imports.
By Konica Bhatt
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