Anybody noticed WTI to Brent gap quickly getting bigger....Right now the gap is 4.7dollar! It was only two dollars a couple of months ago! It clearly tells a truth: there is shortage of heavy Middle East oil which uses Brent as reference price! This also explains why WCS to WTI spread is at historically low level under 10 dollars. This will attract US shale producers export more oil to Asia where China is looking for substitute for the cut by OPEC!
China imported less oil in July compared to the first half. some so called BS analysts said China's lower import means weak demand and is causing concern over China demand growth. In fact, the lower import of China in July was caused by supply shortage because the Saudis cut its export in July and August to boost price and its domestic demand is high for two months as well. Saudi domestic oil inventory is currently at 5 year low!