Oil prices fell after the US Fed (Federal Reserve Bank ) warned of further possible rate hikes that may follow before the end of this year. An increase in interest rates could slow economic growth and reduce demand for oil.
“The combination of further interest rate hikes, dollar strength, and further increases in oil prices will increase the likelihood of a recession. Energy markets are reacting little to U.S. energy data showing that oil inventories fell in line with expectations last week. Oil has also posted gains over the past three weeks.
During the first half of 2023, China imported record volumes of crude oil due to the expansion of refineries and the reopening of the economy after the government eased mobility restrictions following the COVID-19 pandemic. China imported an average of 11.4 million barrels per day in the first half of 2023, a 12% increase from the annual average (10.2 million barrels in 2022). China sourced much of the additional oil it imported in the first half of 2023 from Russia, Iran, Brazil and the United States. Compared to the 2022 average, China’s imports from Russia increased by 23% (400,000 b/d), from Saudi Arabia by 7% (130,000 b/d) and from Brazil by 49% (250,000 b/d). The 2.6 million b/d of crude oil China imported from Russia in June is the largest volume China has ever imported from any country in any month. Chinese imports from the United States more than doubled in the first half of 2023 compared to 2022.
China sourced much of the additional oil it imported in the first half of 2023 from Russia, Iran, Brazil and the United States. Compared to the 2022 average, China’s imports from Russia increased by 23% (400,000 b/d), from Saudi Arabia by 7% (130,000 b/d) and from Brazil by 49% (250,000 b/d). The 2.6 million b/d of crude oil China imported from Russia in June is the largest volume China has ever imported from any country in any month. Chinese imports from the United States more than doubled in the first half of 2023 compared to 2022.