China Could Be About to Remove Oil's Biggest Safety Net
The oil market may soon run out of the supply and demand cushions that have kept prices from soaring to record highs during the huge loss of flows through the Strait of Hormuz. The window provided by the U.S.-Iran memorandum of understanding, during which Middle Eastern producers rushed the crude am
Source: OilPrice.com
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DW NOTE
China bought 11.2 million barrels per day in 2023 and has spent the last eighteen months building the world's largest strategic petroleum reserve. If Beijing stops buying to cap domestic prices or punish producers, there is no bid deep enough to catch a 10% global demand shock in a market already down 30% from last year's high.