It is expected that a dollar increase or decrease in prices of crude oil would affect the import bill by almost USD 1.5 billion per annum.
USA crude on Monday traded above $40 a barrel for the first time since early March, as the market reacted positively to the extension, before selling off later in the session.
Taking advantage of the lower crude oil prices, Chinese crude oil imports soared to record high levels in May, reaching 48 million tonnes, up from 40.2 million tonnes in same month a year ago.
Saudi Arabia will boost output in July to match its output Opec quota while ending voluntary deeper cuts as it sees need for more oil at home amid signs of global demand recovery, the Saudi energy minister said today.
The Organization of the Petroleum Exporting Countries, Russia and other producers - a group known as OPEC+ - agreed in April to cut supply by 9.7 million barrels per day (bpd) in May and June in an effort to prop up prices as coronavirus travel restrictions caused demand to collapse.
"This rebound has been fueled by a macro risk-on backdrop and a policy induced Chinese crude import binge, yet fundamentals are turning bearish", Goldman said.
As for the OPEC+ pact, de facto OPEC leader Saudi Arabia has called on participants to ensure they comply with their promised cuts.
Aramco is the first Persian Gulf producer to announce pricing each month, and it generally sets the trend for roughly 14 million barrels a day of crude exports from the region.
World Health Organization encourages masks where virus widespread
Mike Ryan, WHO executive director of health emergencies programme, said Friday. Everyone else should use what it terms non-medical or fabric masks.
The UAE is OPEC's third-largest producer, and Abu Dhabi holds most of the country's crude. A political deadlock in the country has further complicated production cuts.
Goldman expects supplies to increase with United States shale and Libyan shut-in production coming back online, which would lead to a deficit of 1.2 million barrels per day (bpd) versus a prior estimate of 2 million bpd for June.
In the U.S., the oil rig count has declined for the twelfth consecutive week, according to the latest data released by oilfield services company Baker Hughes on Saturday.
In the USA, about a third of Gulf of Mexico production remains offline even as Tropical Storm Cristobal has moved onshore.
As OPEC met virtually over the weekend, Tropical Storm Cristobal was swirling over the Gulf of Mexico.
Oil prices moved higher on the news.
"OPEC+ faces a Catch-22 situation, " he said.