|
Brent crude LCOc1 fell 36 cents, or 0.4%, to $84.92 a barrel by
0116 GMT while U.S. West Texas Intermediate crude CLc1 was at
$79.65 a barrel, down 21 cents, or 0.3%, amid thin trade during
a U.S. public holiday.
Both contracts rose more than 8% last week, the biggest weekly
gain since October, after China's crude imports rose 4%
year-on-year in December while Lunar New Year travel brightens
the outlook for transportation fuels.
Traffic levels in China are continuing to rebound from record
low levels following the easing of COVID-19 restrictions,
resulting in stronger demand for crude and oil products, ANZ
analysts said in a note.
The rebound in domestic demand is expected to lead to a 40% drop
in China's exports of refined oil products in January from
December's figure, led by gasoline, trading sources and analysts
said.
"While there is still plenty of optimism around Chinese demand,
in the near term the oil market remains relatively well
supplied," ING analysts said in a note.
"We see further upside from 2Q23, as the market tightens."
This week, the Organization of the Petroleum Exporting Countries
and the International Energy Agency will release their monthly
reports, closely watched by investors for global demand and
supply outlooks.
Investors will also be watching for a key Bank of Japan (BOJ)
meeting this week to determine if it would defend its
super-sized stimulus policy.
(Reporting by Florence Tan)
[© 2023 Thomson Reuters. All rights
reserved.]
This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
