Energy Oil prices rise on US strategic reserve refill plan By Reuters October 29, 2024, 7:48 AM Reuters/Nick Oxford Pump jacks operate in front of a drilling rig in an oil field in Midland, Texas Oil prices rose more than 1 percent on Tuesday, reversing some of the previous session’s 6 percent tumble, as a US plan to buy oil for the strategic petroleum reserve (SPR) provided support while investors remained focused on developments in the Middle East. Brent crude futures climbed 94 cents, or 1.32 percent to $72.36 a barrel by 12:37 GMT, while US West Texas Intermediate crude was 98 cents, or 1.45 percent, higher at $68.36 a barrel. Both contracts tumbled 6 percent on Monday, hitting their lowest since October 1, after Israel’s retaliatory strike on Iran at the weekend bypassed Tehran’s oil infrastructure. With signs that neither country seemed likely to escalate the conflict after the attack, investor concerns about flagging global oil demand growth for this year and next rose to the fore. Declining oil demand from China, the world’s largest crude oil importer, has been a drag on global oil consumption and prices. BP BPL CEO Murray Auchincloss told Reuters that global refining margins were “dismal” as global oil demand growth remains below average due to sluggish economic activity in China. Demand will return to normal growth rates after Chinese President Xi Jinping introduces new stimulus measures to the economy, Auchincloss added. IMF lowers 2024 Saudi GDP forecast on oil output US sanctions unlikely to stop Iran’s oil smugglers A Trump win would impact Gulf trade and oil markets “Following Israel’s retaliation, event risk has faded, leaving the oil market to face up to macroeconomic realities. China, where industrial profits are slumping, will be front and centre,” said Harry Tchilinguirian, group head of research at Onyx Capital Group. On Monday the US said it was seeking up to 3 million barrels of oil for the SPR for delivery through to May next year, a purchase that would leave the government with little money to buy more until lawmakers approve more funds. This announcement introduces a fundamental buyer into a category which at present has been sparsely populated, PVM analyst John Evans said. However Tchilinguirian said the barrels are not enough to offset the broader pessimism around oil demand centred in China and Europe. In the US, crude oil and gasoline stockpiles likely rose last week, while distillate inventories were seen down, a preliminary Reuters poll showed on Monday. The American Petroleum Institute industry group is scheduled to release a weekly report on Tuesday and the Energy Information Administration, the statistical arm of the US Department of Energy, will issue one on Wednesday.