China pushed oil higher on Friday and lower this morning

Oil prices climbed on Friday: ICE Brent front month jumped by 3.8% to $111.55/b while NYMEX WTI gained 4.1% to $110.49/b. That is the highest closing price for WTI since March 25,  between Monday and Friday NYMEX WTI inched 0.7% higher whereas ICE Brent went down by 0.9%.

On refined products market, NYMEX RBOB Gasoline future reached an all-time high $3.97/gal as US inventories are shrinking for six weeks in a row.

Friday rally was fueled by news from China, where the number of Covid cases in Beijing is stable and restrictions are easing in Shanghai (in April 2022 China processed 11% less crude than in April 2021). And also by European diplomats saying that the ban on Russian oil imports could be approved soon, as early as today.  

Also in Europe, Vice President Borrell of the European Commission called to reopen talks with Iran regarding the nuclear deal after positive results from diplomatic missions. The US State Department commented against the talks as Iran is not willing to make concessions. With a deal, Iran could add 1mb/d to the market.

In the US, the number of active rigs increased, adding six.

This morning, oil benchmarks trade lower on the Chinese economic data (see Eco comment):  ICE Brent is down by 1.3% and NYMEX WTI is down by 1.0%.

Crude oil import China

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