- Oil reverses some of yesterday’s losses following the Fed’s rate hike pause
- July ’23 WTI gained 62c this morning to trade around $69/Bbl
- The U.S. Fed left interest rates unchanged on Wednesday but hinted at least half of a percentage point hike by year-end
- Equities trade higher while the U.S. dollar weakened to its lowest in nearly four-weeks
- AEGIS expects oil prices to see support in 2H2023 as OPEC+ and Saudi voluntary cuts coincide with rebounding demand, causing outsized global inventory withdrawals
- China’s strong oil demand and industrial output signal demand optimism (Bloomberg)
- China's apparent oil demand increased by 17.1% in May to 14.6 MMBbl/d from 2022 levels, albeit lower than April’s 15.1 MMBbl/d
- Additionally, the nation’s industrial output rose by 3.5% Y-o-Y, according to China’s National Bureau of Statistics
- Furthermore, IEA, in its monthly report, increased the global oil demand growth forecast by 0.2 MMBbl/d to 2.4 MMbbl/d, attributing nearly 60% to China's demand rebound