- Oil trades lower amid concerns of weaker demand
- WTI is up about 3% this week and is currently trading around $88/Bbl
- Crude prices found some support yesterday from 3Q22 U.S. economic data that revealed stronger-than-expected GDP growth
- China's strict Covid-zero policy continues to weigh on the market amid anticipation of weaker fuel demand (Reuters)
- The nation reported over 1,000 new Covid cases for the third straight day
- China tightened Covid restrictions in Wuhan, Xining, and Guangzhou yesterday, raising worries about future economic and demand disruptions as the nation adheres to its strict Covid-zero policy
- This new set of Covid restrictions is expected to have affected more than 200 million people
- Despite the lockdowns, Chinese refiners have increased their crude oil purchases as they expect higher fuel exports through the end of the year (BBG)
- Some of China's biggest buyers have bought at least 10 MMBbl from the Middle East, West Africa, and Brazil since late last week, according to traders
- The latest ramp-up in purchases indicates a potential uptick in both Chinese consumption and global demand after recent months of subdued activity