Amid a spike in Chinese imports of Russian oil, it’s an opportune moment to examine the crude oil market dynamics.
Oil prices have seen an uptick in London as China initiates a series of steps to support its struggling economy.
Brent crude experienced a 1.3% increase, trading above $77, recovering from an earlier dip. US-derived West Texas Intermediate also recorded a marginal rise of 0.2%, approaching $72.
In the face of China’s lending rate cut today and the phased implementation of wider measures to bolster its faltering economy, traders are engaged in a discourse over the extent of assistance the authorities will provide to stimulate growth. China holds the position of the largest importer of crude.
In recent times, the oil market has been relatively unpredictable. The market has been awash with supplies from Russia and Iran, keeping crude availability high.
China set a new record last month for oil imports from Russia and Malaysia, a major hub for cargo transfer.
Prices have largely been under strain this year due to slowing global growth. In an attempt to halt this downward trend, the Organization of Petroleum Exporting Countries (OPEC) and its allies have opted to curtail production.
Attention was also directed towards supplies from the Middle East. Officials from Iraq and Turkey were scheduled to discuss on Monday the potential re-establishment of piped Iraqi oil flow to the Ceyhan port, which has the capacity to transport 500,000 barrels a day.
