The world’s second-largest economy, China’s most recent data on crude oil importation showed a record high in the previous month despite growing concerns that the Chinese leadership imposed economic restrictions particularly in regions hit by COVID-19 resurgence.
Data from the General Administration of Customs showed China’s June imports reached about 12.9 million barrels per day the surpassing a previous record of 11.3 million barrels per day for the month of May
However, OPEC+ a group comprising of major oil producers around the world, recently felt the need to raise crude oil production after successfully doubling the price of crude prices over the last several weeks, through historical output cuts.
The OPEC+ alliance led by the Saudis and Russians plan to normalize their crude oil production, based on the bias that fuel demand is recovering with the ease of COVID-19 lockdowns globally, especially in major global economies, coupled with the resumption of air travels around major global airports.
According to private sources within the oil cartel group, OPEC and its allies are scheduled to meet online on Wednesday, to deliberate on the group’s present and future production, which include plans to resume about 2 million barrels per day in crude oil production following the historical cuts that occurred in the month of April that saw the Saudis rallying other oil major powers in pushing for a 9.7 million barrels per day oil production cut as the rampaging virus led to a collapse of energy demand.
In addition, The IMF in a statement yesterday disclosed about the Middle East crude oil exporters, which form the heartbeat of OPEC, are in for more strains on their economic growth for 2020, revising downward its estimate of economic growth to -7.3%. It said its forecast reflects the “‘double whammy’ from oil price fluctuations (and supply cuts) and the pandemic-linked lockdowns.”