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5/23/2016, 1:00 PM (Source: TeleTrader)
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Oil falls on strong dollar, supply; China oil imports up 7.6% YoY

Import of crude oil in China totalled 32.58 million metric tons in April, which is equal to 8 million barrels per day (mb/d). That's 7.6% higher than in the same month a year ago, according to China's General Administration of Customs.

China imported nearly 124 million tons of crude oil in the period January 1-April 30, which represents an annual rise of almost 12%. Diesel and fuel oil imports fell, while exports of diesel rocketed 173% to a total of 1.2 million tons. On the other hand, kerosene imports soared 84%.

Strong demand originates from the independent refineries, called "teapots." Around 15 such refineries have received importing licenses since the government decided to open market for the smaller refineries in July 2015.

Except for latest data from China, investors could not see reason to enter oil, since the U.S. dollar – in which commodity is generally priced – got stronger. Adding to that is persistent oversupply, which easily offset recent outages in Nigeria and Canada.

Here's the look into current prices at ICE Europe as of 12:47 p.m. CET:

Premium international blend Brent for July delivery fell 1.14% to $48.73 a barrel.

U.S. light sweet crude West Texas Intermediate, also for July, fell 1.30% to $47.83 a barrel.

The Organization of the Petroleum Exporting Countries reported that the OPEC basket price of 13 crudes stood at $44.77 a barrel on Friday, compared with $43.84 the previous day.

 

Image: EPA / Yahya Arhab

Breaking the News / ZR