$RH PetroGas (T13.SG)$$Rex Intl (5WH.SG)$$Dyna-Mac (NO4.SG)$...
Oil prices settled mixed on Mon, retreating as investors cashed in on a jump to a 7-week high on optimism about a possible recovery in demand of top oil importer China as the economy recovers this year from pandemic lockdowns.
Brent crude settled USD0.56 higher at USD88.19. WTI crude settled USD0.02 lower at USD81.62.
Data shows a solid pick-up in travel in China after COVID-19 curbs were eased, ANZ commodity analysts said in a note, pointing out that road traffic congestion in the country's 15 key cities so far this month is up 22% from a year ago.
Crude oil prices in much of the world's physical markets have started the year with a rally as China has shown signs of more buying and traders have worried that sanctions on Russia could tighten supply.
"While the (China) reopening itself will no doubt prove to be complicated, particularly over the holiday season, early indications suggest there has been a rise in activity, meaning the economy could perform better," said OANDA analyst Craig Erlam.
Brent is expected to move back into a range between USD90 and USD100 as the oil market tightens, Erlam said.
Demand for products has lifted the oil market and refining margins, Flynn said. The 3-2-1 crack spread, a proxy for refining margins, rose to USD42.18 on Mon, the highest since Oct.
The EU and G7 coalition will cap prices of Russian refined products from Feb. 5, in addition to the price cap on Russian crude in place since Dec and an EU embargo on imports of Russian crude by sea.
The G7 has agreed to delay a review of the level of the price cap on Russian oil to Mar, a month later than originally planned, to provide time to assess the impact of the oil products price cap.
On the supply side, focus is squarely on Russia, as the country copes with strict price caps on its oil exports. Moscow is widely expected to scale down crude production as its margins are hit by weaker selling prices.
This in turn could tighten global crude supply, providing some upside to prices.
In India, crude oil imports rose to a 5-month high in December, government data showed on Monday, as refiners stocked up discounted Russian fuel amid a steady increase in consumption in the country.
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