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China import rebound tempers Middle East supply-driven oil gains
NBC analysis said a historically large July jump in Chinese petroleum imports helped offset a Middle East supply shock and limit how far oil prices rose, with China’s demand outlook crucial going forward.
National Bank of Canada analyst Jocelyn Paquet, via FXStreet, said China’s sharp reduction in petroleum imports earlier helped cushion the impact of a Middle East supply shock, keeping oil price gains more limited than they otherwise might have been.
The analyst pointed to a July rebound in Chinese imports as a key driver, describing the rise as historically large in percentage terms, and highlighting how swings in China’s buying can materially affect the balance in global energy markets.
Going forward, Paquet said the trajectory of Chinese demand will be as important as developments in the Middle East for determining global energy prices.