The international crude oil prices still consolidated this week, with NYMEX WTI crude benchmark hovering at around $70/bbl, and the weekly average price inched up. Saudi Arabia pledged to maintain its additional 1 million barrel-crude production cut in August, indicating its determination in stabilizing the crude oil market, which underpinned the crude market sentiment. However, investors still mainly adopted a cautious attitude towards the macro demand, as both the Federal Reserve and the European Central Bank intended to ramp up their interest rates further in the future. Therefore, the international crude oil prices kept seesawing this week.

Last week, the gasoline and diesel prices in China climbed slightly amid moderate supply-demand fundamentals, mainly backed by bullish narratives and marginal recovery in international crude oil prices. However, the increase extent was limited, hampered by sloppy downstream demand for refined oil. Long sellers still adopted a cautious attitude towards purchases, and the actual dealings in the refined oil were sluggish. The high temperature facilitated the gasoline consumption from automobiles’ air conditioners somewhat, yet civilians’ long-distance travelling by cars was still rare, so the overall gasoline demand refinement was soft. Meanwhile, the diesel demand was poor, as the diesel consumption from infrastructural constructions, mines, projects, etc. was sapped by high temperature and rainy weather. Meanwhile, many downstream users faced difficulties in destocking, and they showed resistance in intensive purchases. Overall, the gasoline and diesel prices moved slightly higher.

This week, the gasoline consumption could perk up to some extent, because of the upcoming summer holiday when families’ self driving tours will increase, so if international crude oil prices extend gains, gasoline prices could ratchet up. Meanwhile, the diesel demand is unlikely to post noticeable growth, damaged by high temperature and plum rain, and diesel prices are projected to trend flat in the short run.

It is predicted that the WTI crude oil prices may hover at $72-73/bbl next week, and the international crude oil prices may fluctuate upward but see minor increments. The crude oil and refined oil stock decline and crude oil production cut of Saudi Arabia strongly underpin the international crude oil prices. However, the overall macro environment puts a dampener on the international crude oil market. Overall, it is predicted that the international crude oil prices may go up next week, but there will probably be uncertainties in the market.