The Organization of Petroleum Exporting Countries and its allies, OPEC+, are convening on August 1 as oil prices remain relatively unchanged. Both Brent and West Texas Intermediate crude futures have experienced slight declines, hovering near a six-week low. The market’s apprehension stems from dwindling oil imports into China, a major consumer.
This follows a significant drop in Chinese oil imports for the first half of 2024, which sent prices tumbling by around 1.5% in the previous trading session.
China’s Influence on Oil Prices
China, the world’s largest oil consumer, wields significant influence over global crude prices. Recent data indicating a decline in the country’s oil imports has contributed to the recent drop in oil prices. The upcoming OPEC+ meeting is highly anticipated as the cartel’s decision to adjust global oil output will shape market trends.
The group’s previous decision to extend production cuts until 2025 remains in effect. Concerns over weakening Chinese oil demand, as evidenced by declining refinery operations and import figures, have contributed to three consecutive weeks of price declines.
