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Crude is steady as strong Chinese demand relieves concern of everlasting glut
On Thursday, crude prices were steady because strong demand from China relieved concerns of an everlasting fuel glut.
Brent crude futures showed $47.75 a barrel, gaining 1% from the previous close.
West Texas Intermediate crude futures were worth $45.48 a barrel, sliding 1% from the previous close.
China imported up to 212 million tons of crude oil during the first six months of 2017, adding 13.8% compared to the same period of the previous year, as customs data disclosed on Thursday, making China the world's number one oil importer ahead of the US.
The strong demand from China definitely relived worries of an everlasting fuel supply overhang.
On Wednesday, the Organization of the Petroleum Exporting Countries told that the world would require up to 32.20 million bpd of oil from its members in 2018, which is 60,000 bpd less compared to this year, as customers have raising choices of supply from outside the crude cartel.
The market is resilient ahead of the speeches of Fed’s Powell and ECB President Lagarde, but there are still interesting movements.
The uncertainty over US fiscal stimulus and Brexit, and also rising new virus cases deteriorated the market mood. That’s why we can expect the further rally of the US dollar and the fall of riskier assets today.
The market sentiment is mixed, but there are still interesting movements on the market.