Today’s markets analysis on be
Crude oil futures rebounded to a certain extent on Wednesday and could find support in expectations of strong summer demand. Elevated summer travel could amplify U.S. gasoline consumption, while Chinese refinery throughput rose by 8.5% year-on-year in June, reflecting steady fuel demand.
However, U.S. tariff threats cloud the outlook, with concerns that slower global growth could curtail fuel consumption. A sharper slowdown in growth could weigh on crude prices. On the supply side, concerns about immediate disruptions have eased, despite ongoing U.S. tariff threats on Russian oil imports.
Meanwhile, Chinese crude imports continue to outpace refinery throughput, resulting in a surplus. This stockpile could restrain price appreciation should Beijing decide to moderate imports or release reserves, thus exerting a bearish influence on the oil market. In the US, API crude inventories rose by 19 million barrels, while markets were expecting a drawdown.
As a result, the market could continue to see downside risks. Traders could turn to the release of the EIA inventory data today for more hints on demand levels. The market could see more volatility then and could see selling pressure if the data shows a rise in stocks.