Oil Prices Slip as China Crude Imports Drop 20%

by Mohammed Marzuq, KPI Bridge Oil
Monday June 8, 2015

Crude futures settled lower today after information came out of the Far East indicating that the Chinese have imported 20% less crude in May than in April.

The current situation in China directly correlates to over supply.

This is of course adding further impetus to lower oil prices as OPEC leaders made it adamant they have no intention of cutting production output at their Vienna meeting on Friday.

The only item keeping oil prices from a tremendous decline is the U.S dollar, which was softer today compared to other currencies making oil cheaper for those holding those currencies.

It should be noted that these past few months Crude futures have been greatly affected by the volatility in the currency market and speculation that OPEC might cut production.

The typical trend is that when the dollar softens crude prices soar.

We expect crude futures to continue falling slowly as a lot of information is coming to light that will have negative affects on crude futures.

Bunkers were soft today in the primary ports.