China Crude Imports Fall to Lowest Level Since 2018

Chinese crude imports fell to their lowest level since 2018 as the country increased withdrawals from strategic reserves and reduced purchases from major Middle Eastern suppliers. Brent crude for August delivery settled 4.79 percent lower at $73.39 per barrel on Wednesday, the lowest settlement price since March 2. The corresponding WTI contract fell 4.23 percent to $70.11 per barrel.

The 200-day moving average at $78.71 per barrel provided support, according to Standard Chartered analysts, but prices broke below the 76.4 percent Fibonacci retracement level at $73.74 per barrel. Gasoline margins remained firm amid tight inventories and summer driving demand, while diesel and gasoil markets weakened due to softer industrial activity.

The first round of talks between the United States and Iran in Switzerland concluded with positive statements from both sides and an agreement to seek a final accord within 60 days. Markets remain skeptical that complex issues involving nuclear technology and transit through the Strait of Hormuz can be resolved in that timeframe.