You might want to read up on Evergrande this weekendThere 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.