Oil prices retreat as China cuts imports and US exports rise
Physical crude prices have dropped from recent highs of 160 dollars to around 110 dollars per barrel as Chinese refiners reduce production and draw from existing stockpiles. Increased exports from the United States and strategic reserve releases are helping to offset the loss of 14 million barrels per day caused by the ongoing closure of the Strait of Hormuz.
Xurve View
Insights:
Xurve View
Physical crude oil prices fell to $100–$110 per barrel in late May despite the ongoing closure of the Strait of Hormuz. Increased United States exports and a 19% cut in refining production by China drove the unexpected price retreat. For investors, this resilience suggests that demand destruction and inventory drawdowns are currently offsetting the loss of 14% of global supply.
