China’s oil prices have fallen after China cut its import quotas, according to Reuters

Author: Dmitri Zhdannikov

LONDON (Reuters) – Oil prices fell on Thursday after China’s top importers cut their first batch of gross import allocations for 2022, offsetting the impact of US data showing that fuel demand had held up despite rising Omicron coronavirus infections.

futures fell 52 cents or 0.7% to $ 78.71 a barrel at 1022 GMT. The US West Texas Intermediate (WTI) gross futures fell 59 cents, or 0.8%, to $ 75.97 a barrel after six consecutive gain sessions.

China’s oil prices fell sharply before China, the world’s largest importer, cut its first batch of 2022 import quotas by 11%, mostly to independent refiners.

“Market sentiment has been weakened by concerns that the Chinese government may take more drastic action against teapots,” a Singapore analyst said, referring to independent refineries.

Global oil prices have risen by between 50% and 60% in 2021 as fuel demand approaches pre-pandemic levels, and the Organization of the Petroleum Exporting Countries and its allies (OPEC +) have eliminated major production cuts throughout the year. supply oversupply.

Data from the U.S. Energy Information Administration on Wednesday showed that crude oil inventories fell 3.6 million barrels in the week to December 24, more than analysts surveyed by Reuters had expected. [EIA/S]

Inventories of gasoline and distillates also fell, compared to building forecasts by analysts, and demand remained strong despite a record number of COVID-19 cases in the United States.

Oil prices also received support from government measures to limit the impact of COVID-19 cases on economic growth, such as easing test rules.

OPEC + will meet on January 4 to decide whether to continue to increase production in February.

King Salman of Saudi Arabia said on Wednesday that an OPEC + production agreement was needed for the stability of the oil market and that producers had to comply with the pact.