- Oil trades slightly lower amid concerns of weaker-than-expected Chinese economic rebound
- July ’23 WTI lost 83c this morning to trade around $71/Bbl
- On Tuesday, China cut two key lending rates by ten basis points each, marking the first-rate cuts in ten months
- China lowered short-term interest rates following weak inflation data last week, with an extensive stimulus package also being considered
- Following its largest drop since January, the dollar continues to trade lower, supporting crude prices, with equities also trading lower post-Juneteenth holiday
- China's June Imports of Russian Oil to Hit Record High (Bloomberg)
- China is set to import a record 1.5 MMBbl/d of seaborne Russian crude in June, a 6% increase from May, according to Kpler
- State and private Chinese firms, seeking profit from discounted crude, now lead in buying Russian oil, switching from their cautious stance due to EU sanctions
- China additionally imports about 0.8 MMBbl/d via the ESPO pipeline and Kazakhstan transit routes
- However, total Russian seaborne crude exports saw a minor decline from 3.66 MMBbl/d to 3.63 MMBbl/d in the four weeks to June 18
- Current flows are down 0.21 MMBbl/d from their May 21 peak but still 0.25 MMBbl/d more than early 2023. Approximately 90% of these flows head to Asia
- Iran's Crude Exports Hit Five-Year High (Bloomberg)
- Despite being constrained since 2018 due to U.S. sanctions, Iran's oil exports exceeded 1.5 MMBbl/d in May, the highest since 2018, with China being the primary buyer
- Additionally, Iran has increased its crude production to over 3 MMBbl/d, constituting about 3% of the global supply - the highest since 2018