Asian Crude Prices Outpacing Oil in Other RegionsWe`re always hearing about Russia selling Oil at a discount to China which I feel will change with demand if Russia is selling Oil $30 cheaper and with production cuts and slowing shipments why wouldn't Russia bump up prices to near EU cap still being cheaper and how long will Putin watch refineries buying up their cheap Oil and making huge returns reselling it also on refined products plus Russia needs the revenues to fund this war which is hurting them but they won't admit it, once the 500,000 bpd are taken out of production we`ll be sitting on a razor's edge and awareness will be heightened waiting for anything in the world that will disrupt production even a small pipeline of 100,000 bpd going down the market could respond aggressively. Last week was all about Oil surplus and demand but it's hard to believe that EIA and OPEC weren't only assuring us that Oil demand would rise to record but they revised it increasing demand then Putin announced cuts right at the height of all the hype thinking that this is the time to make cuts causing Oil tightness but then days later the US showed the world that we are saturated with Oil plus the US picked apart the reason Russia is cutting back making it sound non-threatening and the US has zero motivation in making Russia look like liers but yet Asia is selling their crude at a $5 premium to our WTI so Asia is demonstrating that we could ask more for Crude. Things are going to heat up regardless of all the talk of weak demand I think that they`re wrong and I do agree that there's enough Oil but it won't last China right now is having problems finding laborers in some factories since the borders came down workers like us want to find jobs in their hometowns versus commuting so they`re offering higher pay and incentives so when these little pockets of the economy are sorted out and job placements are filled because the demand is there if they`re hiring so things are moving. China is also heading to take away Europe as the ones who build Oceanliners it's a new industry for China and will increase Oil demand from this new sector plus the government is very active in stimulus helping kickoff this new borderless economy than China is off to the races and the finish line is now visible. Be patient Oil will head higher.
China has recently upped its orders of crude to feed refineries that are ramping up in response to surging domestic demand for products such as jet fuel and diesel Asian Crude Prices Outpacing Oil in Other Regions (wsj.com) China’s cruise ship industry is months away from its first home-grown vessel, but what’s to come? | South China Morning Post (scmp.com)