Oil Markets Subdued As Concerned About Demand From China

Crude continued to trend lower during the APAC session today after falling sharply yesterday on supply concerns. Commodities in general have struggled. Brent is down 0.2% to $82.62/bbl but is off the intraday low of $82.50. WTI is 0.4% lower at $78.46 after a low of $78.37. The USD index is flat.

• China’s NPC announced a 5% growth target for 2024, close to 2023’s outturn, with 3% for CPI. Monetary policy will be flexible and fiscal policy proactive. There are also plans to reduce energy intensity. The news didn’t support markets as they continue to be concerned re demand from the world’s largest oil importer and will watch for measures to stimulate growth.
• Energy markets will continue to monitor developments in the US with the focus on Fed comments and Friday’s February payrolls. There have also been a number of large US crude inventory builds in recent weeks while product stocks have declined. Last week’s data as reported by the API is released later today.
• Crude continues to get support from ongoing tensions in the Middle East with ceasefire talks showing no progress and vessels still being attacked off Yemen.
• Later the Fed’s Barr speaks and February services ISM/PMI and final January durable goods orders print. European PMIs are also released.