China’s Futile Attempt To Send Oil Prices Lower and will pay more later14 Sep 2021 03:15
By ZeroHedge - Sep 13, 2021, 12:00 PM CDT
Oil prices were choppy last week, but as of this writing, have so far failed to break out of last week’s trading range. Further to that end, the oil market was strong in the early part of the week, but came under selling pressure on Thursday as news of China releasing oil from its strategic reserve (SPR) hit the wires. Ironically, the move comes on the heels of President Biden indicating he was also considering releasing crude oil from the US strategic reserve in the wake of Hurricane Ida in addition to pleading with OPEC+ to pump more oil in the weeks before the storm. In the end, a US release made no sense as a significant portion of refining capacity was also knocked offline along with crude production. Nonetheless, the move by China, the world’s biggest crude oil and commodity importer, was no doubt designed to ease upward price pressures on rising oil import costs, however, it is unlikely to have the desired effect, as we see it.
For starters, it signals political vulnerability to commodity inflation just as Biden’s earlier plea to OPEC+ did, and even more so, it is not enough physical supply to move the dial and only partially offsets the drop in US production since the storm hit. Initial reports are suggesting that about 22mb will be released which is roughly two days’ worth of oil imports for China or just a couple hours’ worth of daily global demand. On top of that, the release reduces the amount of oil available for a true supply-side emergency and, as such, will have to be refilled in the not too distant future and potentially at higher prices.
Sauk(Olivia) get your potty next to you. On this Tuesday the Harbour Energy shares price will fly pass the £4 mark just for you. Don't get caught out without your potty. Hahahaha. (*_*).
https://oilprice.com/Energy/Energy-General/Chinas-Futile-Attempt-To-Send-Oil-Prices-Lower.amp.html
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