8.4 C
London
Saturday, February 4, 2023
HomeChina's Biggest Oil Trading Firm Goes On A Buying Spree
Array

China’s Biggest Oil Trading Firm Goes On A Buying Spree

Date:

Related stories

North Korea Is Becoming A Big Problem For China’s Geopolitical Ambitions

The existential North Korean nuclear and missile threats negatively impact the Asia-Pacific security environment for the United States, South Korea, Japan and Australia. In response, these countries have taken countermeasures to defend themselves again...

Meet Garrain Jones at CapCon 6

Famous author and scientist, Peter Senge once said, “All great things have small beginnings.” Such words are especially true for Garrain Jones whose origins were quite humble. From his moribund encounters and family loss to thefts to imprisonment for drug trafficking, his life looked bleak till he turned it around with a newfound sense of […]

The post Meet Garrain Jones at CapCon 6 appeared first on Capitalism.com.

California’s High-Speed Rail Dreams Just Aren’t Feasible

Well, it’s big in Japan…That is what proponents of California’s high-speed rail project say when asked about the whys and wherefores of the system.  In other words, if it works somewhere else it will work here. That argument, though, falls in the face ...

Trump: Truth About “Fake News” Reporting On “Russia Hoax” Is Finally Coming Out

Trump: Truth About "Fake News" Reporting On "Russia Hoax" Is Finally Coming Out Authored by Janice Hisle via The Epoch Times (emphasis ours), Former U.S. President Donald Trump says he finally sees some truth emerging about “the fake news...

Price Cuts Working: Tesla Shipped 66,051 Vehicles In China In January, Up 18% From December

Price Cuts Working: Tesla Shipped 66,051 Vehicles In China In January, Up 18% From December It looks like Tesla's price cuts in China have worked, at least for now. The company's China segment shipped 66,051 vehicles in January, according...
China's Biggest Oil Trading Firm Goes On A Buying Spree

One of the core pillars behind the bull case for oil in 2023 is that China, having permanently shelved its zero covid policies, will open the floodgates on oil buying as the Chinese economy recovery sharply and powerfully.

Today, we got the first indication of precisely that: Unipec, the largest oil trader in China and the trading unit of state-held refiner Sinopec, purchased 9 million barrels of Abu Dhabi’s Upper Zakum crude grade for March loadings, traders told Bloomberg, in a clear sign that Chinese oil demand will pick up pace in the second quarter as many expect.

18 cargoes of Upper Zakum crude is above the typical purchases of Unipec, OilPrice reported citing traders.

Still, traders aren’t sure whether the buying spree for Abu Dhabi’s crude is directly linked with expectations of a surge in demand. It may be because of the price of the crude linked to the Dubai benchmark prices, or part of the cargoes could be resold, according to various traders who spoke to Bloomberg.  

At any rate, analysts and the market expect Chinese oil demand to rebound after the reopening of the world’s largest crude oil importer after nearly three years of Covid-related lockdowns.

Saudi oil giant Aramco expects the Chinese reopening and a pick-up in jet fuel demand to lead to a rebound in global oil demand this year, Amin Nasser, the CEO of the world’s biggest oil firm, told Bloomberg in an interview earlier this week.

The International Energy Agency (IEA) sees China’s reopening driving global oil demand to a record high of 101.7 million barrels per day (bpd) this year, up by 1.9 million bpd from 2022. That’s an upgrade of 200,000 bpd of the IEA’s demand growth estimate for 2023, from 1.7 million bpd growth expected in December. Almost half of the oil demand growth this year will come from China after Beijing lifted its Covid restrictions, the IEA said in its closely-watched Oil Market Report (OMR) for January earlier this week. 

“China will drive nearly half this global demand growth even as the shape and speed of its reopening remains uncertain,” the IEA said.

Tyler Durden Fri, 01/20/2023 - 19:00

Subscribe

- Never miss a story with notifications

- Gain full access to our premium content

- Browse free from up to 5 devices at once

Latest stories

LEAVE A REPLY

Please enter your comment!
Please enter your name here