One reason oil futures haven’t risen more is because China has added around 3.5mbp/d to the oil market as they cut crude imports. This is despite the fact that China is still actively exporting refined products, reversing an export ban from earlier, indicating that Beijing believes it has sufficient fuel availability to weather this crisis.
There are various theories for this, such as domestic factors like slower economic activity and increase in electric vehicle usage, but other theories include the increased reliance on domestic coal-to-chemicals capacity. While people have also suggested the usage of their strategic oil reserves, this ultimately only explains around a third of the import cut, hence the speculation of other factors allowing China to cut oil imports.
Overall, this is good news because there is more oil available for everyone else as a result of this. China has interests in not wanting a complete meltdown of the global economy due to lack of oil, and is thus providing increased supplies to everyone to prevent this outcome.
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One reason oil futures haven’t risen more is because China has added around 3.5mbp/d to the oil market as they cut crude imports. This is despite the fact that China is still actively exporting refined products, reversing an export ban from earlier, indicating that Beijing believes it has sufficient fuel availability to weather this crisis.
There are various theories for this, such as domestic factors like slower economic activity and increase in electric vehicle usage, but other theories include the increased reliance on domestic coal-to-chemicals capacity. While people have also suggested the usage of their strategic oil reserves, this ultimately only explains around a third of the import cut, hence the speculation of other factors allowing China to cut oil imports.
Overall, this is good news because there is more oil available for everyone else as a result of this. China has interests in not wanting a complete meltdown of the global economy due to lack of oil, and is thus providing increased supplies to everyone to prevent this outcome.
https://preview.redd.it/3bo6mml5ryzg1.png?width=661&format=png&auto=webp&s=b0f680cca3ac076ce665c8f95ecd8c773ea1016e
Xi seems to have an invisible touch, yeah