Free Trial

Prices Surge On China Quarantine News

OIL

After rallying strongly overnight on supply worries, oil prices have been fairly stable during trading today but have just surged on reports that China is considering reducing inbound quarantine periods to 7 days. WTI is up 0.8% to $86.20/bbl and Brent is +0.6% and is around $93.

  • Oil prices continue to be thrown around by concerns that a global slowdown will depress demand for oil on one side and supply issues on the other (OPEC+ cuts, EU sanctions on Russian seaborne oil exports, Kazakhstan).
  • The market has not reacted to President Biden’s announcement to add 15mn barrels from the Strategic Petroleum Reserve. The information had already been expected and on the other hand the EIA announced an unexpected drawdown in crude inventories of 1.725mn barrels.
  • The US also only has 25 days of diesel available, the lowest since 2008, which is important for heating in winter. Europe’s fuel inventories are also declining. (Bloomberg)
  • WTI moving averages have been converging and prices are now just above 5- and 20-day moving averages but still below the 50-day MA.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.