The global crude oil market is at a "turning point," with energy analysis firm Energy Aspects warning that oil prices are heading for an "upward spiral" due to accelerated global inventory drawdowns, strong demand recovery from China, and disruptions to shipping in the Middle East.
Amrita Sen, founder of Energy Aspects, stated that global crude oil inventories collectively drew down by 120 million barrels in the past two weeks. China's crude oil imports are expected to reach 10 million barrels per day (bpd) in September, an increase of approximately 3 million bpd from June. Influenced by this, on September 10, WTI crude oil futures closed up 6.69% at $102.48/barrel, and Brent crude oil futures rose 6.34% to $107.63/barrel, both reaching new highs since May 19.
In response to market fluctuations, the Shanghai International Energy Exchange (INE) announced on September 11 that, effective from the close of settlement on September 14, it would raise the daily price limit for crude oil and low-sulfur fuel oil futures contracts to 16% and increase the trading margin ratio. China's National Development and Reform Commission (NDRC) also implemented temporary adjustments to domestic refined oil prices at 24:00 on September 11, raising gasoline and diesel prices by 260 yuan and 250 yuan per ton, respectively, which is lower than the increase that would have been implemented according to the mechanism.
OPEC simultaneously lowered its 2026 demand growth forecast to 380,000 bpd.
Energy Aspects warns of oil prices heading for an "upward spiral," as Chinese regulators raise crude oil futures' daily price limits and adjust refined oil prices.
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