RE:Fear of Chinese demand collapsing is way overdone.d_trump wrote: Chinese stocks became grossly overvalued and a bursting of the bubble was totally justified - but what does that have to do with Chinese demand for crude? Only a very small percent of Chinese are in the stock market and despite a slowdown in Chinese industrial activity, the Chinese consumer is doing just fine. The Chinese are not losing their jobs and their retail spending is up 10% this year. Also unlike copper, iron ore and other base metals where China accounts for 50% of global demand, China only accounts for about 12% of global crude demand. Demand from the top user of crude (US) is growing at a record pace, so is demand from the #4 user (India).
The imminent rebound in crude oil prices is being held back by fear out of China, but so far there is absolutely no hard data to back that up (Chinese crude imports in July were at a record).
finally some sane comments. also, the market has chosen to care about china negative news and absolutely ignore the positive data coming out of china. not for long