Crude Oil: Global Demand Pressure With China Reopening

Prices at the pump have been inching up to $3.41 a gallon as a national average. That is up from $3.28 just a month ago. "China continues to play a huge factor in the crude oil price as their demand rises from the Covid reopening. This is putting pressure on global oil demand. The 5% cut that Russia is looking for is relatively small, but has some meaning. There is a fight between Saudi Arabia and Russia for the Chinese demand business. Russian oil production was about 10K barrels a day 2022 and Chinese consumption was about 15M barrels per day in January 2023. My forecast is if that crude oil can close monthly above $75, that would put the energy product in a stronger position," says David Williams.