China imposes a consumption tax on some oil products, starting from June – the global economy

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The Chinese Ministry of Finance announced the imposition of a consumption tax on imports of light viscous lubricants and aromatic compounds such as benzene, toluene, xylene and dilute asphalt.

According to “Bloomberg”, these consumer fees, which will be collected from June 12, aim to regulate the functioning of the market and promote fair competition. It is noteworthy that the production of fuel using these products poses a threat to the environment.

Oil prices advanced yesterday, erasing some of the sharp losses incurred in the previous session, as stock markets rose, but the gains were limited by the situation of the Corona virus in India, the big consumer of crude and the resumption of pipeline work in the United States.

Brent crude futures increased 66 cents, equivalent to 1 percent, to $ 67.71 a barrel, and US West Texas Intermediate crude rose 63 cents, or 1 percent, to $ 64.45 a barrel.

The prices of both crude oils fell 3%, the day before yesterday, Thursday, and are heading to record their first weekly loss in three weeks.

Global stocks rose and the dollar fell, yesterday, after US Federal Reserve officials said that there would be no imminent move towards tightening monetary policy in the world’s largest economy.

Oil prices are under pressure this week due to the rise in coronavirus cases in India, as well as concerns that the highly contagious strain that was first discovered there is spreading to other countries.

Today, Friday, India recorded 343 thousand and 144 new cases of Coronavirus in the last 24 hours, which raises the total number of infections it has to exceed the threshold of 24 million, while the number of deaths due to “Covid 19” increased by four thousand.

Commerzbank said, “It is likely that (Brent’s) repeated failure to exceed $ 70 has sparked sales by participants in the speculative market, especially as the colonial pipeline is accelerating again in the United States.”

And in the United States, President Joe Biden has reassured motorists that fuel supplies will start to return to normal by the end of this week, even as more petrol stations in the southeast of the country run out of petrol nearly a week after a cyber attack on the nation’s main fuel pipeline.

According to (Reuters), Edward Moya, chief market analyst at Oanda, said: “The massive upward cycle of this commodity has reached a strong stopping point and the energy market does not know what to do in light of the stability of Wall Street against the background of inflation and the slow flatness of the curve in India.” India is the third largest consumer of oil in the world.

He added, “The prospects for crude demand are still positive for the second half of the year, and this will prevent any major drop in oil prices.”

Later on Thursday, Colonial Pipeline said it had fully restarted its pipeline system and had begun deliveries in all of its markets.

Kazakhstani production

Kazakhstan’s Energy Ministry said yesterday that the country produced 1.483 million barrels of oil per day in April, adding that it would compensate for the excess production when some large fields were closed due to maintenance work this summer.

The statement confirmed in a Reuters report that the former Soviet republic exceeded the quota of 1.457 million barrels per day specified by the OPEC + group agreement for international oil producers.

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