Oil Prices Dip As China Considers Market Intervention

Cat:

Related stories

Peter Obi’s Dangerous Game By AZU ISHIEKWENE

By AZU ISHIEKWENE Peter Obi has the best chance against...

French president sues Candace Owens over claims his wife is a man

French President Emmanuel Macron and his wife, Brigitte, filed...

TotalEnergies Warns of Looming Oil Glut

TotalEnergies (NYSE: TTE) reported on Thursday its weakest adjusted...

French Company Secures Ownership of DStv, GOtv in $3 Billion MultiChoice Deal

By Abiola Olawale  A French media conglomerate, Canal+ has finalized...
…The key trigger of the price retreat early on Wednesday came from China, where the National Development and Reform Commission (NDRC) said that the government was considering an intervention to reduce the price of coal
…The possible Chinese intervention sent the key Chinese coal futures plunging early on Wednesda
…A Chinese intervention to bring coal prices down could “reverse the fuel switch to oil,”

Oil prices dropped early on Wednesday after China said it was considering an intervention on the domestic coal market to reduce the record prices down to a “reasonable range.”

As of 7:56 a.m. EDT on Wednesday, before the weekly EIA inventory report, WTI Crude prices were down 1.11% at $82.04, and Brent Crude was trading down by 0.96% to $84.26.

Oil prices continued to fall from the multi-year highs reached early this past Monday, when WTI Crude hit the highest level since October 2014 at $83.73, and the international benchmark briefly jumped above $86 per barrel at $86.04, which was the highest price since October 2018.

The key trigger of the price retreat early on Wednesday came from China, where the National Development and Reform Commission (NDRC) said that the government was considering an intervention to reduce the price of coal whose recent “increase has completely deviated from the fundamentals of supply and demand.”

The key trigger of the price retreat early on Wednesday came from China, where the National Development and Reform Commission (NDRC) said that the government was considering an intervention to reduce the price of coal whose recent “increase has completely deviated from the fundamentals of supply and demand.”

“The heating season is approaching and the price is still showing a further irrational upward trend,” Reuters quoted the commission as saying.

The possible Chinese intervention sent the key Chinese coal futures plunging early on Wednesday.

On Tuesday, the most actively traded coal futures in China had hit a fresh record-high after the energy crisis worsened because of colder weather in recent days.

A Chinese intervention to bring coal prices down could “reverse the fuel switch to oil,” analysts at Commerzbank told Reuters.

The build last week was estimated at 3.294 million barrels, above analyst expectations of a 2.233-million-barrel build. Still, the API report was not entirely bearish for market sentiment because gasoline and distillate inventories, as well as crude stocks at the Cushing hub, were estimated to have dropped last week.

NB: Tsvetana Paraskova wrote this article for Oilprice.com

Tsvetana Paraskova
Tsvetana Paraskova
Hamilton Nwosa is an experienced, and committed communication, business, administrative, data and research specialist . His deep knowledge of the intersection between communication, business, data, and journalism are quite profound. His passion for professional excellence remains the guiding principle of his work, and in the course of his career spanning sectors such as administration, tourism, business management, communication and journalism, Hamilton has won key awards. He is a delightful writer, researcher and data analyst. He loves team-work, problem-solving, organizational management, communication strategy, and enjoys travelling. He can be reached at: hamilton_68@yahoo.com

Subscribe

- Never miss a story with notifications

- Gain full access to our premium content

- Browse free from up to 5 devices at once

Latest stories

NDN
Latest News
Akpabio vs Natasha: High-Stakes Drama as Immigration Officers Seize, Release Natasha's Passport at Abuja Airport Peter Obi’s Dangerous Game By AZU ISHIEKWENEFrench president sues Candace Owens over claims his wife is a manTotalEnergies Warns of Looming Oil GlutFrench Company Secures Ownership of DStv, GOtv in $3 Billion MultiChoice Deal2027 Calculations: Tinubu's Minister, Nentawe Yilwatda Takes Over as APC National Chairman, Succeeds Ganduje#EndSARS: Court Orders IGP Egbetokun to Pay N10m for Violating Protesters' RightsFrench Company Secures Ownership of DStv, GOtv in $3 Billion MultiChoice Deal2027: Osun Senators' Defection to APC, a Grave Error, Governor Adeleke’s Aide Blasts Fadahunsi, Fadeyi Mystery Buyer of First Bank Stake Spurs Query From Nigeria’s SECThailand recalls ambassador to Cambodia amid border tensionsFor Aisha Buhari at a time like this By Funke EgbemodeSaraki Blasts Atiku, David Mark, Dino Melaye, Dele Momodu, Other PDP Defectors, Says Mass Exodus Lacks Vision2027: Four Senators Dump PDP as APC Numbers Rise To 70 in Upper Chambers[VIDEO]: Battle Rages As Amaechi Storms Rivers, Pulls Unprecedented Crowd for ADC
X whatsapp