RE:You might want to read up on Evergrande this weekendObscure1 wrote: There has been a number of recent warnings about the Chinese economy recently such as the country slashing interest rates this week. So far, the oil market has ignored. the warning signs
Real estate makes up 25% of the Chinese economy (50% more than the USA economy) which is huge.
The imploding real estate market in China just showed up on America's front door yesterday as Evergrande has filed for Us bankruptcy protection.
Canadian banks have little or no exposure, but I'm not sure about the USA system. The Chaptor 15 filing in the USA is ONLY for $31 billion in assets but the tremors will be felt at Blackrock and others this weekend.
If China's "problem" spreads, things may get interesting and not in a good way.
Meanwhile, the bankruptcy filing is another warning that things are not well in China.
Questions to ponder:
If China experiences an economic meltdown, how will it affect its oil imports which were 12.67 million barrels per day in June 2023?
If China's daily imports collapse, will it act like a contagion for oil demand?
Is this the next Black Swan event as some are suggesting, or will an egocentric America just gloss over the "Chinese" situation as "not our problem" which the ROW will be watching?
You know what is best for you and your family so I won't make any suggestion other than to do some reading and think about what happens if the demand for oil takes a serious hit in the coming months if there is a fall out in China.
Thanks for reading.
I had already covered this subject in my earlier post. Your and Experienced's observation are just surface scratching of china as seen by western analysts.
Expanding on that.
i put trump trade war with china as the official start (2018) of china collapse but it took covid19 to really pop the china bubble in 2020. China couldn't cremate dead bodies fast enough. Add to that moronic lockdown, foreigners moved their money and staff out of china. Oil import started to drop in 2020
China Crude Oil: Imports, 1980 – 2023 | CEIC Data
but as i said before, china weakness is overplayed by western analysts.
world oil demand had recovered since 2020
Global crude oil demand 2023 | Statista
ghost cities? that's old news, dead wood but that's what westerners can see on the surface now. I think EV bubble is next bubble to pop for china. .You can call me out should this doesn't happen but you need to remember this post of mine for reference LOL You can also call me out if Experienced exercise his pre-order and buy the IONIQ 5. LOL