Decline on weak economic data from US, China

World oil price

According to ReutersOil prices ended Thursday's session lower as weaker-than-expected economic data in China and the United States outweighed the International Energy Agency's (IEA) forecast for higher global demand.

Brent crude for July delivery fell 7 cents, or 32%, to $0,43 a barrel. The price of US WTI oil fell 74,91 cents, or 25%, to $0,35 a barrel.

Both oil benchmarks gained more than 1% in the first session of the week, reversing a three-day losing streak.

Pressure on prices on May 16 was Chinese data showing industrial output and retail sales growth in the East Asian nation below forecasts in April, suggesting the world's second-largest economy lost momentum at the start of the second quarter.

However, China's refining output in April increased 4% year-on-year as refineries maintained high operations to meet recovering domestic fuel demand and stockpiled oil for the summer tourist season.

Phil Flynn, an analyst at Price Futures Group, said there was a lot of concern about China's industrial numbers, but if you look at the country's actual demand or refinery activity, the record will be broken.

With refiners stockpiling oil ahead of the northern hemisphere summer tourist season, China's crude oil imports in May are approaching 5 million bpd, compared with 11 million bpd in April, according to Refinitiv Oil Research.

Similarly, US data showed that in April, retail sales increased less than expected. This means that consumers are feeling the pinch due to rising prices and interest rates.

Richmond Federal Reserve Chairman Thomas Barkin said on May 16 he was "comfortable" with further rate hikes if it was necessary to reduce inflation.

The IEA raised its forecast for global oil demand this year by 200.000 bpd to a record 102 million bpd. The agency said China's recovery after the lifting of Covid-19 restrictions had exceeded expectations, with demand hitting a record 16 million bpd in March.

In another upbeat development, the US Department of Energy said a day earlier it would buy 3 million barrels of crude for August delivery in a move to begin filling the Strategic Petroleum Reserve (SPR).

The US SPR has fallen to its lowest level since 1983 after the administration of President Joe Biden last year "released" up to 180 million barrels of oil from the SPR - the largest ever as part of a strategy to stabilize the surging oil market.

On May 16, data from the American Petroleum Institute (API) showed that US crude oil inventories increased by about 5 million barrels last week.

Domestic petrol price

Retail prices of petrol and oil in the country on July 17 are as follows:

MAI HUONG