Greg had a look at the oil techs here in his post:
ANZ had a bit of a summary of the drivers, this in brief from a longer piece. Monday data from China sent the price a little lower, but optimism over Shnaghai reopening soon returned:
- Crude oil prices were under pressure earlier in the session after data revealed the extent of the impact of China’s lockdowns on economic activity. Industrial output and consumer spending slumped in April to the worst levels since the pandemic began. This has resulted in apparent oil demand falling 6.7% m/m to 12.09mb/d in April, based on data from the National Bureau of Statistics. However, there may be some relief from the lockdowns, with Shanghai recording its second day of no COVID-19 cases outside of quarantine.
On supply (and other) issues helping underpin price:
- Crude oil prices rallied later in the session amid tightness in refined products ahead of the key demand period. US gasoline futures pushed above USD4/gallon for the first time ever as robust demand and constraints on refining capacity pushed inventories lower. European Union foreign ministers met in Brussels to discuss the next round of Russian sanctions. A proposed ban on oil imports has been delayed, as Hungary sticks to demands for an extended phase-out period. Germany said it will stop importing Russian crude by the end of the year even if the EU fails to agree on a coordinated approach.
Oil update:
