As fears of a recession grow, imports from China are only slowly recovering

8 Aug 2022 , 08:50 AM

Brent crude futures had fallen 74 cents, or 0.8%, to $94.18 per barrel. The previous week saw front-month prices fall to their lowest levels since February, falling 13.7% and recording their biggest weekly decline since April 2020.

U.S. West Texas Intermediate crude was trading at $88.34 per barrel, down 67 cents (0.8%) from the previous week and continuing its downward trend.

According to customs data, China, the largest crude importer in the world, imported 8.79 million barrels of crude per day (bpd) in July, up from a four-year low in June but still 9.5% less than in the same month last year.

Despite rising crude prices and thin domestic margins, Chinese refiners reduced their stockpiles while the nation’s exports as a whole increased.

Despite an upcoming EU ban that will go into force on December 5, Russian crude and oil product exports have resumed.

The number of oil rigs in the United States was reduced by energy companies last week for the first time in ten weeks, by the most since September.

After the Senate on Sunday passed a huge $430 billion bill meant to combat climate change among other things, the U.S. clean energy industry saw an uptick.