Crude Up on News that China Will Grow by at Least 7%

by Tim Bonett, KPI Bridge Oil
Tuesday July 23, 2013

Crude benchmarks rose slightly by day's end today on news that China will grow by at least 7% next year and on anticipation of another draw on U.S. Inventories.

Beijing News reported that the slowest economic growth Chinese policy makers will tolerate is 7%, giving some investors an optimistic view on China's future demand.

In the United States, speculators are anticipating tomorrow's EIA report to show a draw of approximately 2.7 million barrels, indicating continued refinery runs and crude demand.

Today's prices did feel some fluctuation as many are now anticipating the Fed to reduce it's stimulus program starting in September and halt purchases in the second quarter of next year.

Focus is on tomorrow morning's EIA report to see what the U.S. demand picture has in store for us.

WTI settled up $0.29/BBL at $107.23 while Brent finished up $0.27/BBL at $108.42. Bunker prices remained stable in the primary ports.

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KPI Bridge Oil is one of the world's leading international bunker broking and trading firms. With a network of offices that covers every major time zone, we have an in-depth knowledge of ports and bunker markets around the world. Our access to real-time market information and long-established credit lines with suppliers means we use our buying power in the right place and at the right time. All this ensures our customers enjoy competitive prices - and on favourable terms.

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