U.S. Crude Tops $102 as China Demand Threatens Return to $112 Wartime Highs
Updated
Updated · CNBC · Sep 10
U.S. Crude Tops $102 as China Demand Threatens Return to $112 Wartime Highs
3 articles · Updated · CNBC · Sep 10
Summary
$102 a barrel marked the highest U.S. crude close since May, extending a rally from $100 earlier this week as Middle East fighting intensified and attacks shut Saudi Arabia's East-West pipeline.
The contract has jumped about 50% from its $68.55 summer low after the U.S.-Iran memorandum collapsed and Washington reimposed a naval blockade on Iran, rebuilding the market's war risk premium.
China is now the key swing factor: imports fell to about 6 million bpd in June from 11.5 million in February, then recovered to roughly 7 million bpd in July and August as refining margins surged.
Analysts differ on whether Beijing will chase triple-digit crude, but emergency stockpile releases are nearing an end and global inventories have already dropped 400 million barrels, leaving less buffer against further price spikes.