COLUMN-End of China's crude oil buying splurge may dent demand optimism: Russell - Reuters:
There is a crude oil market narrative that demand is recovering from the shock of the coronavirus pandemic, and therefore producers that previously cut output can now put more supply back into the market.
While there is evidence to support the view that demand is higher than at the height of pandemic-induced lockdowns in the second quarter, there are questions as to whether it is strong enough to absorb the likely increase in supply.
Much of the optimism remains centred around a recovery in Asia, particularly in China, the world’s largest crude importer, which has been setting records for imports in recent months.
Certainly, August looks set to be another strong month for China, with Refinitiv Oil Research forecasting imports of 12.11 million barrels per day (bpd).
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