From BarChart, September 14:
Oct WTI crude oil (CLV22) on Wednesday closed up +1.17 (+1.34%), and Oct RBOB gasoline (RBV22) closed up +4.41 (+1.78%).
Crude oil and gasoline prices on Wednesday rallied, with crude climbing to a 1-week high and gasoline climbing to a 2-week high. A weaker dollar Wednesday supported energy prices. Energy prices also moved higher on reduced pandemic lockdown restrictions in China, the world's largest crude importer. Crude prices maintained moderate gains after Wednesday's mixed EIA inventory report.
Crude found support Wednesday after China announced it is easing pandemic lockdowns in Chengdu, a city of 21 million people, which should boost economic activity and energy demand. China's Covid lockdowns have hurt Chinese energy demand in recent months. Chinese refineries in July handled the least amount of oil since March 2020 as Covid lockdowns and refinery shutdowns for maintenance undercut crude demand. As a result, China's apparent oil demand in July fell -9.7% y/y to 12.16 million bpd, and China's Jan-July apparent oil demand is down -4.6% y/y to 12.74 million bpd.
Crude prices have support from Tuesday's Bloomberg report that said the Biden administration was considering buying crude oil to refill the Strategic Petroleum Reserve (SPR) when prices fall below $80 a barrel. The SPR is currently at its lowest level since 1984 after the Biden administration back in March ordered the release of 180 million barrels of oil from the reserve to curb surging oil prices....
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