Oil Prices Edge Higher Amid Libya and Iraq Supply Shocks, Yet Chinese Demand Stays Stagnant

Oil Prices Edge Higher Amid Libya and Iraq Supply Shocks, Yet Chinese Demand Stays Stagnant

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Oil Futures Sneak Past the Report Card

When the Middle East tugs at the balance sheet, favour markets feel the tug‑of‑war—think Libya and Iraq in the spotlight.

Libya: A Quiet Quake

  • Political drama turned production into a bustling dorm‑room—half the output pulled the plug.
  • Exports? Turned “in” into … …out… for a while.

Iraq: The OPEC+ Come‑to‑School

  • Planned a September cut to hit the prescribed quota.
  • Result? A tighter global supply dial.

Stocks Skyrocket, but…

Prices climbed like a tourist on a hot back‑pack, yet a chill in demand—especially from China—could squash that surge.

China’s Two‑Faced Reality
  • Exploration & production: shining with profits from Sinopec and PetroChina.
  • Refining: woe, woe! Lower fuel demand, sluggish economy, diesel slump, and a push toward LNG trucks.
  • Crude imports dipped 2.4% year‑over‑year in the first seven months of ’24.
US Stocks: A Mixed‑Bag Update
  • Crude inventories fell, but not as much as expected—hinting at a gentle drop in demand.
  • Market’s whisper: OPEC may keep cutting to keep the price rollercoaster tame.

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