Eurozone Manufacturing Activity Falls for Eighth Consecutive Month
February 21, 2023
Fitch Ratings said China’s reopening will drive consumption recovery in refined oil products in 2023 as consumer travel increases and sentiment improves.
According to traders and Refinitiv Eikon data, China doubled its purchases of Urals (Russia most common crude grade) in the first half of February compared with the same period of January amid more attractive pricing and as Chinese demand rebounds after COVID-related lockdowns.
Eurozone manufacturers reported business activity fell in February for the eight consecutive month. Preliminary estimates from partial survey data put the purchasing mangers’ index at 48.5 in February compared with 48.8 in January.
US crude inventories are 8% above the five-year average. Gasoline inventories are 5% below the five-year average, and distillate inventories are 15% below the five-year average. Propane inventories are 29% above the five-year average.
The sentiment has turned a bit negative in the last few days, helping the market sell off. Now the market is again getting China demand improvement news to offset that a bit and markets continue to trade in a range, with crude seen supported in the low to mid 70’s for now. Also helping to add some support to price is the increased tension between China and the US.