{"id":10210,"date":"2023-05-17T23:58:48","date_gmt":"2023-05-18T03:58:48","guid":{"rendered":"https:\/\/ifintechworld.com\/investing\/oil-prices-end-lower-as-traders-weigh-energy-demand-prospects\/"},"modified":"2023-05-17T23:58:49","modified_gmt":"2023-05-18T03:58:49","slug":"oil-prices-end-lower-as-traders-weigh-energy-demand-prospects","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=10210","title":{"rendered":"Oil prices end lower as traders weigh energy demand prospects"},"content":{"rendered":"<div id=\"js-article__body\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0002058596\" role=\"document\">\n<p>Oil ended lower on Tuesday after the International Energy Agency raised its forecast for growth in crude demand, but economic data from China was seen as \u201cunderwelming,\u201d raising uncertainty over the demand outlook from the world\u2019s largest energy consumer. <\/p>\n<p>Still, price losses were modest as the IEA\u2019s monthly report also included a bullish assessment of China\u2019s demand outlook and the U.S. Energy Department announced late Monday afternoon that it plans to buy up to 3 million barrels of crude oil for the nation\u2019s Strategic Petroleum Reserve.<\/p>\n<div class=\"paywall\">\n<h2>Price action<\/h2>\n<ul class=\"articleList\">\n<li>\n      West Texas Intermediate crude for June delivery<br \/>\n        CL00,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/209723049\/delayed\" class=\"negative\">-0.18%<\/bg-quote><\/p>\n<p>        CL.1,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/211629951\/delayed\" class=\"negative\">-0.18%<\/bg-quote><\/p>\n<p>        CLM23,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/209724952\/delayed\" class=\"negative\">-0.18%<\/bg-quote><br \/>\n       fell 25 cents, or nearly 0.4%, to settle at $70.86 a barrel on the New York Mercantile Exchange. The move came just a day after prices snapped a four-session losing streak.<\/p>\n<\/li>\n<li>\n      July Brent crude<br \/>\n        BRN00,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/209704782\/delayed\" class=\"negative\">-0.18%<\/bg-quote><\/p>\n<p>        BRNQ23,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/209705493\/delayed\" class=\"negative\">-0.16%<\/bg-quote><span>,<\/span><br \/>\n       the global benchmark, shed 32 cents, or 0.4%, to $74.91 a barrel on ICE Futures Europe.<\/p>\n<\/li>\n<li>\n      Back on Nymex, June gasoline<br \/>\n        RBM23,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/215376517\/delayed\" class=\"positive\">+0.02%<\/bg-quote><br \/>\n       settled at $2.48 a gallon, up 0.3%, while June heating oil<br \/>\n        HOM23,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/215376436\/delayed\" class=\"negative\">-0.09%<\/bg-quote><br \/>\n       declined by 0.6% at $2.36 a gallon.<\/p>\n<\/li>\n<li>\n      June natural gas<br \/>\n        NGM23,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210190794\/delayed\" class=\"positive\">+0.63%<\/bg-quote><br \/>\n       tacked on less than 0.1% to $2.38 per million British thermal units after a 4.8% gain on Monday. <\/p>\n<\/li>\n<\/ul>\n<h2>Market drivers <\/h2>\n<p>Crude futures found support earlier in the trading session after the Paris-based International Energy Agency, in its monthly report, said China\u2019s demand for oil is growing at a faster-than-expected pace. The growing demand threatens to tighten crude markets and send oil prices higher as supply struggles to keep up, the report said.<\/p>\n<p>The IEA lifted its forecast for global oil demand growth in 2023 by 200,000 barrels a day, to 2.2 million barrels a day. That would bring total demand to 102 million barrels a day, up 100,000 barrels a day from the agency\u2019s April forecast. IEA estimated China\u2019s crude demand hit a record 16 million barrels a day in March and that the country will account for 60% of growth in global oil demand in 2023.<\/p>\n<p>However, economic data from China were \u201cunderwhelming,\u201d Jameel Ahmad, chief analyst at CompareBroker.io, told MarketWatch. This wasn\u2019t necessarily expected as the market had been \u201cpreviously relatively content that the Chinese economy reopening, after protracted COVID lockdowns, would provide much-needed help to world economic momentum.\u201d<\/p>\n<p>China\u2019s National Bureau of Statistics said retail sales, a key consumption metric, rose 18.4% from a year earlier in April, accelerating from a 10.6% increase in March, according to Dow Jones Newswires. Economists surveyed by The Wall Street Journal had forecast growth of 20.5% as the economy recovered from Covid lockdowns lifted only late last year. Industrial production rose 5.6% in April from a year earlier, accelerating after a 3.9% increase in March but came in below the 11% growth forecast by economists. <\/p>\n<div data-layout=\"inline\n                \" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetPullQuote\n            inline\n    scope-web|mobileapps\n  article__inset\n          article__inset--type-InsetPullQuote\n            article__inset--inline\n  \"><\/p>\n<div class=\"wsj-article-pullquote article__inset__pullquote \">\n<p class=\"pullquote-content article__inset__pullquote__quote\">\n        <span class=\"l-qt article__inset__pullquote__mark--left\">\u201c<\/span> It appears that the Chinese economy is \u201cencountering its own headwinds, which perhaps it will be able to handle domestically \u2014 but for global economic partners that are so reliant on demand from China, this is bad news.\u201d <span class=\"r-qt article__inset__pullquote__mark--right\">\u201d<\/span>\n      <\/p>\n<p>        <small><br \/>\n          <span class=\"inset-author article__inset__pullquote__author\">\u2014 Jameel Ahmad, CompareBroker.io<\/span><br \/>\n        <\/small><\/p><\/div>\n<\/p><\/div>\n<p>It appears that the Chinese economy is \u201cencountering its own headwinds, which perhaps it will be able to handle domestically \u2014 but for global economic partners that are so reliant on demand from China, this is bad news,\u201d Ahmad said. <\/p>\n<p>Oil is \u201cvery sensitive to demand issues and given that we are operating within a weaker global economic landscape as it is, lower potential demand from a weaker Chinese economy is another kick in the teeth\u201d for prices, he said.<\/p>\n<p><strong>See:<\/strong> Here\u2019s what might lead to a spike in gasoline prices this summer<\/p>\n<p>Meanwhile, the Biden administration has said it\u2019ll begin to refill the SPR and that may help to underpin prices, analysts said.<\/p>\n<p>The move likely puts a floor under oil at $70, which is the Biden administration\u2019s stated \u201cbuy below price,\u201d said Phil Flynn, senior market analyst at The Price Futures Group. The purchase is also an attempt to \u201cappease\u201d Saudi Arabia, which was apparently unhappy when the U.S. failed to buy oil \u201cwhen the bank run scare gave them a chance.\u201d<\/p>\n<p>Still, the 3 million-barrel amount is \u201cjust too small\u201d and if the government keeps up that rate, it will take years, he said, to buy back the the oil it sold from the SPR. <\/p>\n<p>In a note, Warren Patterson and Ewa Manthey, strategists at ING, also said the volumes are \u201crelatively small, particularly when you consider the DOE released more than 220 million barrels from the SPR in 2022.\u201d <\/p>\n<\/p><\/div>\n<\/div>\n<p>Read the full article <a href=\"https:\/\/www.marketwatch.com\/story\/oil-prices-fail-to-hold-gains-scored-after-iea-boosts-china-demand-outlook-536316f0?mod=investing\" target=\"_blank\" rel=\"noopener\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Oil ended lower on Tuesday after the International Energy Agency raised its forecast for growth in crude demand, but economic data from China was seen as \u201cunderwelming,\u201d raising uncertainty over the demand outlook from the world\u2019s largest energy consumer. Still, price losses were modest as the IEA\u2019s monthly report also included a bullish assessment of [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":9374,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"video","meta":{"footnotes":""},"categories":[239],"tags":[83],"class_list":["post-10210","post","type-post","status-publish","format-video","has-post-thumbnail","hentry","category-investing","tag-featured","post_format-post-format-video"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Oil prices end lower as traders weigh energy demand prospects | iFintechWorld<\/title>\n<meta name=\"description\" content=\"Oil ended lower on Tuesday after the International Energy Agency raised its forecast for growth in crude demand, but economic data from China was seen as\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ifintechworld.com\/?p=10210\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Oil prices end lower as traders weigh energy demand prospects | iFintechWorld\" \/>\n<meta property=\"og:description\" content=\"Oil ended lower on Tuesday after the International Energy Agency raised its forecast for growth in crude demand, but economic data from China was seen as\" \/>\n<meta property=\"og:url\" content=\"https:\/\/ifintechworld.com\/?p=10210\" \/>\n<meta property=\"og:site_name\" content=\"iFintechWorld\" \/>\n<meta property=\"article:published_time\" content=\"2023-05-18T03:58:48+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-05-18T03:58:49+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/05\/1684238408_social.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"640\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"News Room\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"News Room\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/ifintechworld.com\/?p=10210#article\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=10210\"},\"author\":{\"name\":\"News Room\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\"},\"headline\":\"Oil prices end lower as traders weigh energy demand prospects\",\"datePublished\":\"2023-05-18T03:58:48+00:00\",\"dateModified\":\"2023-05-18T03:58:49+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=10210\"},\"wordCount\":740,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"keywords\":[\"Featured\"],\"articleSection\":[\"Investing\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/ifintechworld.com\/?p=10210#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/ifintechworld.com\/?p=10210\",\"url\":\"https:\/\/ifintechworld.com\/?p=10210\",\"name\":\"Oil prices end lower as traders weigh energy demand prospects | iFintechWorld\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/#website\"},\"datePublished\":\"2023-05-18T03:58:48+00:00\",\"dateModified\":\"2023-05-18T03:58:49+00:00\",\"description\":\"Oil ended lower on Tuesday after the International Energy Agency raised its forecast for growth in crude demand, but economic data from China was seen as\",\"breadcrumb\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=10210#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/ifintechworld.com\/?p=10210\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/ifintechworld.com\/?p=10210#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/ifintechworld.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Oil prices end lower as traders weigh energy demand prospects\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/ifintechworld.com\/#website\",\"url\":\"https:\/\/ifintechworld.com\/\",\"name\":\"Repay Down\",\"description\":\"Latest Personal Finance News, Tips and Updates\",\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/ifintechworld.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/ifintechworld.com\/#organization\",\"name\":\"Repay Down\",\"url\":\"https:\/\/ifintechworld.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"width\":558,\"height\":90,\"caption\":\"Repay Down\"},\"image\":{\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\",\"name\":\"News Room\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"caption\":\"News Room\"},\"sameAs\":[\"https:\/\/ifintechworld.com\"],\"url\":\"https:\/\/ifintechworld.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Oil prices end lower as traders weigh energy demand prospects | iFintechWorld","description":"Oil ended lower on Tuesday after the International Energy Agency raised its forecast for growth in crude demand, but economic data from China was seen as","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/ifintechworld.com\/?p=10210","og_locale":"en_US","og_type":"article","og_title":"Oil prices end lower as traders weigh energy demand prospects | iFintechWorld","og_description":"Oil ended lower on Tuesday after the International Energy Agency raised its forecast for growth in crude demand, but economic data from China was seen as","og_url":"https:\/\/ifintechworld.com\/?p=10210","og_site_name":"iFintechWorld","article_published_time":"2023-05-18T03:58:48+00:00","article_modified_time":"2023-05-18T03:58:49+00:00","og_image":[{"width":1280,"height":640,"url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/05\/1684238408_social.jpeg","type":"image\/jpeg"}],"author":"News Room","twitter_card":"summary_large_image","twitter_misc":{"Written by":"News Room","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/ifintechworld.com\/?p=10210#article","isPartOf":{"@id":"https:\/\/ifintechworld.com\/?p=10210"},"author":{"name":"News Room","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61"},"headline":"Oil prices end lower as traders weigh energy demand prospects","datePublished":"2023-05-18T03:58:48+00:00","dateModified":"2023-05-18T03:58:49+00:00","mainEntityOfPage":{"@id":"https:\/\/ifintechworld.com\/?p=10210"},"wordCount":740,"commentCount":0,"publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"keywords":["Featured"],"articleSection":["Investing"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/ifintechworld.com\/?p=10210#respond"]}]},{"@type":"WebPage","@id":"https:\/\/ifintechworld.com\/?p=10210","url":"https:\/\/ifintechworld.com\/?p=10210","name":"Oil prices end lower as traders weigh energy demand prospects | iFintechWorld","isPartOf":{"@id":"https:\/\/ifintechworld.com\/#website"},"datePublished":"2023-05-18T03:58:48+00:00","dateModified":"2023-05-18T03:58:49+00:00","description":"Oil ended lower on Tuesday after the International Energy Agency raised its forecast for growth in crude demand, but economic data from China was seen as","breadcrumb":{"@id":"https:\/\/ifintechworld.com\/?p=10210#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/ifintechworld.com\/?p=10210"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/ifintechworld.com\/?p=10210#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/ifintechworld.com\/"},{"@type":"ListItem","position":2,"name":"Oil prices end lower as traders weigh energy demand prospects"}]},{"@type":"WebSite","@id":"https:\/\/ifintechworld.com\/#website","url":"https:\/\/ifintechworld.com\/","name":"Repay Down","description":"Latest Personal Finance News, Tips and Updates","publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/ifintechworld.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/ifintechworld.com\/#organization","name":"Repay Down","url":"https:\/\/ifintechworld.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","width":558,"height":90,"caption":"Repay Down"},"image":{"@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61","name":"News Room","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","caption":"News Room"},"sameAs":["https:\/\/ifintechworld.com"],"url":"https:\/\/ifintechworld.com\/?author=1"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/10210","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10210"}],"version-history":[{"count":1,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/10210\/revisions"}],"predecessor-version":[{"id":10211,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/10210\/revisions\/10211"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/media\/9374"}],"wp:attachment":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10210"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10210"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10210"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}