China’s economic data supports crude prices

Crude oil prices hit nine-month highs in early February as stronger economic data from China and seasonally cold weather boosted prices

Brent and WTI futures were trading at $117/b and $97/b respectively on 18 February. WTI’s $2.50/b gain over the past month has been more modest than Brent’s $6/b rally as a surplus of crude supplies in the US Midcontinent restrains domestic crude prices. Improving confidence in the global economy and the return of the expanded 400,000 b/d Seaway pipeline have bolstered both Brent and WTI prices. Open arbitrage routes to Asia, production glitches in the North Sea and strong demand for refined products have also underpinned prices. In a note on 8 February, Deutsche Bank said that China’s crude oil imports in January averaged 6 million b/d, up 420,000 b/d year-on-year and an increase of 350,000