China creates two-tier oil dynamic
There is a bifurcation in the global oil market as China’s stockpiling contrasts with reduced inventories elsewhere
The oil-exporting nations are boosting production. OPEC forecasters see a need for increased output to meet projected consumption and refill inventories. Other analysts seem to agree. The problem, however, is that the global market has split into two parts. Companies in one country, China, are aggressively building inventories on government orders. Firms elsewhere are striving to shed stocks out of a fear that oil-exporting countries cannot or will not maintain market stability. Oil prices will stay at current levels if the Chinese buy enough, and fall otherwise. This raises a huge issue. Chinese buying has held crude prices above $60/bl. Market-watchers should be more concerned than they ar
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