Crude Oil Prices Rise on China Demand Boost and Iran-Oman Deal
Crude oil prices have been rising for the third consecutive day, reaching a high of $83.75 for Brent crude and up by 7.30% from its lowest level this week.
The rebound is attributed to China's increased oil purchases after boosting imports of 8.45 million barrels per day in July, which is lower than before the war but may increase later this year.
China's strategic petroleum reserves have been falling, and Beijing is rushing to fill them, which will lead to more oil demand as it is the world's largest crude oil importer.
The Iran-Oman deal to reopen the Strait of Hormuz has also contributed to the rise in prices. The deal allows for the reopening of the strait but with certain conditions, including a 20% fee for countries that have harmed Iran and will not be allowed to pass through until a compensation plan is made.
The long-term impact of this deal may see countries like Saudi Arabia and the UAE investing heavily in pipelines to avoid the Strait of Hormuz.