Oil Boosted By Record Chinese Imports But Upside Seems Short-Lived
Oil reversed higher on Thursday, after closing in the red for two days in a row. Despite the API’s weekly report showing a rise in U.S stockpiles for the first time in the last five weeks and record-high oil production from OPEC in September, the crude market received some support today.
Oil imports to China were reported to have hit a new record last month, eclipsing the United States as the world’s top buyer of foreign oil for the third time in a year. According to Chinese data, the country’s volume of crude imports rose by 18% in September from a year earlier, to 33.06 million tons, or 8.04 million bpd.
However, the current rally in crude prices is estimated to be limited in strength, amid concerns over the possibility of an output curb agreement which will be discussed between OPEC and non-OPEC producers next month, and the return of U.S shale oil producers as prices return to levels where shale-oil production can be come viable.
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