Oil prices are stabilizing amid fears of a slowdown in

Oil prices are stabilizing amid fears of a slowdown in Chinese demand

The chimneys of the Total Grandpuits oil refinery are seen just after sunset southeast of Paris, France, March 1, 2021. REUTERS/Christian Hartmann

  • China’s Q1 GDP beats expectations but March weakness increases forecast risk
  • Libya halts operations at El Feel oil field amid protests
  • US oil drilling, production rises with energy prices

TOKYO, April 18 – Oil prices stabilized on Monday, as concerns over slowing demand in China prompted investors to take profits on gains that fell earlier in the day on worries about tight supply and the shifting aggravating Ukraine crisis were achieved.

Brent futures were up 27 cents, or 0.2%, to $111.97 a barrel by 0642 GMT, slipping from their highest level since March 30 of $113.80 set at the start of the session.

US West Texas Intermediate futures were up 20 cents, or 0.2%, to $107.15 a barrel after rallying to $108.55, the highest since March 30.

China’s economy slowed in March as consumption, property and exports were hit hard, dusting faster-than-expected first-quarter growth numbers and worsening an outlook already weakened by COVID-19 restrictions and the war in Ukraine was. Continue reading

The country refined 2% less oil in March than a year earlier, with throughput falling to its lowest level since October as a surge in crude prices squeezed margins and strict lockdowns hit fuel economy. Continue reading

“Some Asian investors posted gains on concerns about slowing demand in China,” said Satoru Yoshida, commodities analyst at Rakuten Securities.

Last Thursday, a day before the Easter weekend bank holiday, both Brent and WTI rose more than 2.5% after news the European Union could introduce an import ban on Russian oil.

EU governments said last week the bloc’s executive branch is drafting proposals to ban Russian crude, but diplomats said Germany does not actively support an immediate embargo. Continue reading

These comments came before tensions rose over the Ukraine crisis. Authorities reported multiple explosions in western and southern Ukraine on Monday as Russian forces claimed near-total control of the strategic southern port city of Mariupol after nearly two months of bloody fighting. Continue reading

“The ongoing war between Russia and Ukraine with no sign of a truce has fueled supply fears as demand in the northern hemisphere is expected to pick up as the driving season approaches,” said Chiyoki Chen, chief analyst at Sunward Trading.

The International Energy Agency had warned that from May about 3 million barrels per day (bpd) of Russian oil could be trapped due to sanctions or buyers voluntarily avoiding Russian cargoes. Continue reading

Russian oil production continued to fall in April, falling 7.5% in the first half of the month from March, Interfax news agency reported on Friday.

Libya added pressure as Libya halted oil production from its El Feel oil field on Sunday and two sources in the Zueitina oil port said exports there had been halted after protesters demanding the resignation of Tripoli-based Prime Minister Abdulhamid al-Dbeibah took over the locations. Continue reading

However, US oil production forecasts are being revised upwards despite labor and supply chain constraints as higher prices lead to more drilling and well completion activity, according to industry experts. Continue reading

Reporting by Yuka Obayashi; Editing by Kenneth Maxwell