Sinopec Among China’s Oil Giants Seeking More Russian ImportI've been saying, why would China want our $80+ Oil when they could buy it at $35 a barrel cheaper that's huge when we're talking about the volume that's needed and right now the initial surge that started Chinese New Year for demand has to stay strong from transportation and refining Oil but manufacturing has to have a couple of consecutive months showing growth and with China, last Manufacturing reading so low that the likelihood of positive growth could come on China's next release but if manufacturing trend that has been lower shows another loss Oil will plunge. My reason for posting this is for the headline alone if this doesn't convince you China wants all Russian Oil, We have Russia in a war with hatred aimed at the US because of their power so Russia needs allies China being 2nd biggest economy they want their wagon hitched to them giving them steep discounts Russia has to buy friends this war has made Putin look like the monster he is when it comes to killing women and children. This will be a very interesting week for Oil with all the US Data being released and Tue morning 8:30am US Inflation numbers are out. There's no guarantee that China will ever reach 50% of the worlds Oil demand this year and I'm saying that it will be tough in a global recession caused by rising Intrest Rates if there ever was a wrong time to open up for business this could be challenging for China as the #1 US economy contracts and if it's not contracting the FED will fix that and there's the worry that China could have a new COVID variant emerging so these headwinds will certainly dictate just how much China will grow this year and maybe that's why Oil average is pegged at $78. Russia cutting output will only hurt Russia and I'm not convinced that the US wants to support Oil over $85 after failing to hit $83 since Nov rather they might want a lower Oil price tailor-made for the US slowing economy SPR needs refilling and the US might concentrate on having that happen just in case of Russia firing off nukes to Ukraine the US needs to remain in a strong position if Oil disruption ever gets drastic. One thing Russia has cemented since this war is that Europe wants to be rid of depending on Russia for NG because every time Putin has a fit he cuts the supply off. The US might take a wait-and-see attitude on Russia cutting supply instead of doing exactly what Putin wants the US to do panic and raise Oil prices so he knows nothing about the US having the strongest commitment not to negotiate with terrorists someone should send him a US handbook on what not to do also a book on living under sanctions written by Cuba and North Korea. lol You have to love trading Oil and everything that affects it to keep you sharp.
China’s Oil Companies Want More Russian Crude as Demand Recovered - Bloomberg
https://www.stats.gov.cn/english/ Manufacturing Production - Countries - List (tradingeconomics.com) Economic Calendar (tradingeconomics.com)