How China Became the Ultimate Swing Oil Buyer
Five months of mostly closed Strait of Hormuz have not sent oil prices spiking to $150 or $200 per barrel, as many analysts had warned in March. Even as more than 10% of global crude oil supply suddenly disappeared from the market, oil didn’t hit record high levels. Crude oil prices haven’t even sta
Source: OilPrice.com
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DW NOTE
China cut crude imports 11% year-on-year in the first half — the sixth consecutive quarter of declines — while stockpiles at commercial facilities hit a four-year low. Beijing isn't a swing buyer by choice; it's a swing buyer because industrial demand is collapsing faster than the refining sector can adjust. When your property developers stop pouring concrete, you stop burning diesel.