+91-9310 295 053

Mon – Sat (10AM To 07PM)

ShreeMetalPrices: Oil prices inches up by China travel hopes, OPEC+ Surprise Production cuts


Oil prices increased modestly in early Asian trading on Friday as tightened supplies and a weaker dollar helped markets ignore an OPEC warning about future headwinds. Crude is now on track to have its fourth consecutive positive week.

According to data released on Thursday, China’s oil imports increased by almost 22% in March to reach the largest level since June 2020.

This was due to increased production at the nation’s refineries to meet the demand for fuel exports as well as increased local consumption following the relaxation of the majority of anti-COVID measures.

The Organisation of the Petroleum Exporting Countries, or OPEC, also reaffirmed in its monthly report that a recovery and in China will propel oil consumption to record highs this year. The statistics contributed to this narrative.

By 13:00 IST , West Texas Intermediate price of crude increased 0.5% to $82.53 per barrel, while Brent oil futures increased 0.1% to $86.42 per barrel.

After the Organisation of Petroleum Exporting Countries warning that market weren’t as tightly as they were a year earlier and that while demand was strengthening heading into the summer, stocks still remained high, both contracts dropped more than 1% on Thursday. In addition, the cartel expressed worry about a probable recession& rising rates of interest that may stifle demand.

This week, the oil prices was expected to increase by 1.3% to 2.3%, marking the fourth straight week of gains, partly due to an unexpected production cut by OPEC earlier in the month.

The dollar’s decline this week, to levels close to a year low, helped commodity priced in the dollar, and markets also started factoring in a higher likelihood that the US Federal Reserve will stop raising interest rates by June.