Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner.

Oil holds above $105 as demand for fuels offsets China lockdowns

© Shutterstock / bob63oil tanker Hong Kong
A file picture of an oil tanker.

Oil held gains above $105 a barrel as investors weighed higher demand for refined products against a slew of lockdowns in major cities in China.

West Texas Intermediate futures were little changed in early Asian trade after closing 0.5% higher on Monday. Record fuel exports from the U.S. Gulf Coast are draining local supplies, pushing diesel margins to a fresh high. The tightness reflects higher global demand for fuels, especially from Latin America, as supply remains low on the shunning of Russian cargoes.

Oil has been grappling with a tumultuous period of trading since Russia’s invasion of Ukraine in late February. Prices on Monday initially retreated as Beijing and Shanghai implemented stringent measures to contain a widespread Covid-19 outbreak, stoking concerns over demand. In Europe, a ban on Russian imports is set to be proposed by the European Union by the end of the year.

WTI for June delivery added 22 cents to $105.39 a barrel on the New York Mercantile Exchange at 9:36 a.m. in Singapore.
Brent for July settlement rose 0.1% to $107.71 a barrel on the ICE Futures Europe exchange, after closing 0.4% higher on Monday.

“Oil is currently being buoyed by record fuel shipments from the U.S., but it’s most likely be a temporary factor,” Will Sungchil Yun, a senior commodities analyst at VI Investment Corp. in Seoul, said by phone. “The market will continue to be rattled by the prospects of a ban on Russian imports and China’s Covid Zero strategy, which will have a more lasting impact on the prices.”

Crude climbed for a fifth month in April, marking the longest monthly winning streak since January 2018. Still, concerns over an economic slowdown, persistently high inflation and an increasingly aggressive tightening rhetoric by Federal Reserve officials have continued to rattle the market, leaving prices vulnerable to big swings.

Brent remains in backwardation, a bullish structure where near-dated contracts are more expensive than later-dated ones. The benchmark’s prompt timespread closed at $1.56 a barrel in backwardation on Monday, compared with a high of $3.88 on March 8.

Recommended for you

More from Energy Voice

Latest Posts