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OEF Rapid Review Articles

Ship tracking data, sourced from Bloomberg, shows that 83 supertankers carrying around 166 million barrels of oil are headed to China, which has stockpiled an impressive 787,000 barrels a day in the first quarter of 2016 – the highest Chinese oil stockpiling rate since 2014. Additionally, in January 2015 it was reported that China’s strategic petroleum reserve would be increased from 30 days to 90 days. Later in January 2016, it was revealed that China was building underground oil storage facilities to complement its above-ground storage tanks. So it could be considered in the light of this that in contrast to Saudi Arabia, which is a swing producer, China is acting like a swing consumer. Such increased demand from China has helped in lapping up excess oil production, and if If its imports drop, according to Oil Price, the world will return to the oil supply glut and oil prices will retrace back to the lower $30 a barrel.
SOURCE: oilprice.com
Oilprice.com
LINK TO THE SOURCE ARTICLE:
Why China Is Really Dictating the Oil Supply Glut

 


China_Oil_Stockpiling_web11
LINK TO THE SOURCE ARTICLE:
Why China Is Really Dictating the Oil Supply Glut

 

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