(Bloomberg) — The crude market has experienced a tumultuous few weeks, with concerns over the wider economy causing a decline in prices. However, despite this, the demand for oil remains strong enough to support a potential rebound in prices.
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The international benchmark Brent almost fell to $70 a barrel on Thursday, having lost 17% since mid-April due to fears of a US recession and signs of a disappointing recovery in China. Crude in New York also experienced a decline over the past three weeks, falling to $20 before recovering.
Despite this, there are indications that the underlying oil market is resilient. China is importing a large number of cargoes as domestic travel rebounds, and traders anticipate that the country’s crude purchases will remain high in the coming months. Inventories are tightening globally, and should deplete even faster as Saudi Arabia and its OPEC+ allies implement new supply cutbacks.
Even the most pessimistic forecasters in the industry are reassured that a supply deficit is imminent, which will trigger a…
2023-05-04 21:38:34
Source from finance.yahoo.com