After an initial push to regain customers and clear excess inventories, Persian Gulf producers are likely to moderate price competition to prevent oil prices falling much below $70 a barrel, says Ole Hansen from Saxo Bank. "Much will depend on China, whose imports fell dramatically during the war, and how its refiners and state buyers respond in the coming months," the head of commodities strategy says. China has become an important price stabilizer in recent years, increasing purchases for strategic and commercial storage when prices are low and scaling back imports when prices rise sharply. Hansen says he expects China to approach refilling with some caution as it wants to avoid triggering a sudden boost to prices. (giulia.petroni@wsj.com)
Dow Jones Newswires
Gulf Competition Might Moderate to Avoid Price Fall — Market Talk
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After an initial push to regain customers and clear excess inventories, Persian Gulf producers are likely to moderate price competition to prevent oil prices falling much below $70 a barrel, says Ole Hansen from Saxo Bank. "Much will depend on China, whose imports fell dramatically during the war…