View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
October 20, 2014

Oil price approaches $86 amid increase in Chinese oil demand

The price of Brent crude increased to around $86 a barrel on Tuesday following the rise of oil demand in China.

The price of Brent crude oil increased to around $86 a barrel on Tuesday following the rise of oil demand in China.

Reuters reported that Brent increased 60 cents to $86 a barrel and US crude grew 50 cents to reach $83.21.

Oil demand in China grew 6.2% in September 2014 to 10.3 million barrels per day, the highest since February this year.

The country’s factory production also increased 8% in September and its economy grew by 7.3% in the third quarter of 2014.

PVM Oil Associates analyst Tamas Varga was quoted by the news agency as saying: "Oil is up in reaction to the Chinese demand figures.

"But this is a rally that should be sold into.

"Oil demand in China grew 6.2% in September 2014 to 10.3 million barrels per day, the highest since February this year."

"The rise in implied Chinese oil demand may have more to do with filling stockpiles.

"Chinese companies have been buying crude oil because it has been cheap."

The International Energy Agency (IEA) has cut its worldwide oil demand growth forecast for 2015 due to continuing decline in Chinese growth .

Several members of the Organization of the Petroleum Exporting Countries (OPEC) have suggested that the group is unlikely to cut production before its meeting, which is due to be held on 27 November in Vienna, Austria.

Libya is supporting a cut in production but other African nations are against the country’s move.

The slump in oil price is also expected to affect shale production in the US.

Energy

Related Companies

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Friday. The industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Offshore Technology