Despite denials, yesterday's oil price rally sustained on the back of rumors that Iran was willing to support a production freeze. However, an unexpected crude build overnight from API combined with news that Angola has overtaken Saudi Arabia as the number 1 seller of oil to China (more supply at the margin) has sunk WTI Cride back to $47 - erasing all of yesterday's gains...
Iran rumors have died... for now...
But the API build (biggest in 4 months) and Bloomberg noting that "Angola Overtakes Saudi Arabia as No. 1 Oil Seller in China" has not helped...
China’s imports of crude oil from Angola rose 23% y/y to 4.72m tons in July, second highest on record,according to General Administration of Customs data released Wednesday.
- That’s equivalent to about 1.12m b/d; imports rose to record 4.78m tons in Feb.
- Imports from Russia -14% y/y to 3.23m tons, lowest since Aug. 2015 and down from 4.11m tons in June
- Imports of Saudi crude -4.2% y/y at 4.03m tons, lowest since March and compared with June’s 4.57m tons
- Imports from Iran -1.7% y/y to 2.4m tons, lowest since Jan. and down from June’s 3.21m tons
- Imports of Iraq crude +18% y/y to 3.13m tons vs 2.33m tons in June
Of course - all that will change with DOE data today the world's oil investors remain glued to production data - ignoring demand.
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