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Monday, October 2, 2023

Drag on Oil Demand in China and US Is Limiting Rally, Citigroup’s Morse Says

 The drag on oil demand in China, Europe and the US is weighing heavily on crude prices, capping the potential gains from OPEC+ supply cuts, Citigroup Inc. analyst Ed Morse says.

China is cutting back purchases of expensive crude and exporting more high-value refined products as the country grows to be almost as important to oil markets as OPEC+, Morse said in an interview on Bloomberg Television. The nation’s pullback will counter crude’s recent rally and help shift the oil market to a surplus next year, with Brent collapsing to the low $70s a barrel, Morse wrote in a note earlier today.

https://www.bloomberg.com/news/articles/2023-10-02/citi-s-morse-sees-oil-demand-drag-in-china-us-limiting-rally

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