Money & Economics

[johnfitz]

Unlike OPEC, which traditionally manipulates oil prices by adjusting supply, China exerts control by manipulating demand. By deciding to stop purchasing oil and instead relying on its vast stockpiles, China can force global prices downward.

Sneaky. Such a simple plan... and someone was thinking ahead.

 

[bigredfish]

Theory, why is oil price so cheap ( see the Iran thread discussion we have had on questioning and wondering what is really going on )

China China China

Theory is that China has decided that it will control the demand by building a massive oil storage out and filling it with cheap oil ..


China Replaced OPEC — And Nobody Is Talking About It


This video, featuring Troy W. Eckard of Eckard Enterprises, explores how China has positioned itself as the world's new "swing demand" player in the global oil market, potentially shifting power away from traditional supply-side influencers like OPEC.

Key Takeaways:​

• China's Massive Storage Strategy (1:37 - 2:35): Over the last decade, China has built enormous storage capacity—estimated between 1.2 and 1.5 billion barrels—which is roughly twice the size of the United States’ Strategic Petroleum Reserve.
• Control Through Demand (3:31 - 4:12): Unlike OPEC, which traditionally manipulates oil prices by adjusting supply, China exerts control by manipulating demand. By deciding to stop purchasing oil and instead relying on its vast stockpiles, China can force global prices downward.
• Market Manipulation Mechanics (4:56 - 6:02): By intentionally halting imports, China can create a temporary supply glut. Once prices drop significantly due to this lack of demand, China enters the market to purchase large volumes of oil at lower prices, effectively replenishing its reserves at a discount.
• Recommendations for the U.S. (6:32 - 7:35): Eckard argues that the United States should similarly invest in a much larger strategic storage capacity (1 to 3 billion barrels). This would allow the U.S. to buffer against OPEC supply shocks without forcing domestic producers to sell their oil at deflated prices during temporary market gluts.

Conclusion:Troy W. Eckard concludes that China has successfully become the number one swing player on the demand side, fundamentally altering how global oil markets operate (7:35 - 8:25).

I've seen that. And while they do have a strong position, it doesnt fully explain the US price.

Our SPR is all but empty.
Bessent has admitted on TV that he's manipulating futures by establishing huge paper short positions.

We do indeed import Oil contrary to what many think, because 1) we arent and havent been drilling baby drilling, and 2) much of our light oil isnt the right stuff for our refineries.

Sometime in the next 7-10 days we'll have to pay more or ration.
Will the Chinese help us out by halting imports again? (last week it was reported they had begun importing again)

 

[bigredfish]

When even Amazon can’t feed their AI beast, there might be a problem ..

 

[bigredfish]

 

[bigredfish]

Asian Contagion Coming here…

 

[bigredfish]

Digging into this today… another key indicator that we’re close to the end

 

[bigredfish]

Add this to the picture… we’re on borrowed time

 

[bigredfish]

I've seen that. And while they do have a strong position, it doesnt fully explain the US price.

Our SPR is all but empty.
Bessent has admitted on TV that he's manipulating futures by establishing huge paper short positions.

We do indeed import Oil contrary to what many think, because 1) we arent and havent been drilling baby drilling, and 2) much of our light oil isnt the right stuff for our refineries.

Sometime in the next 7-10 days we'll have to pay more or ration.
Will the Chinese help us out by halting imports again? (last week it was reported they had begun importing again)

Ahem...

 

[bigredfish]

 

[bigredfish]

More on Japan

 

[bigredfish]

Where have I heard this before...

 

[bigredfish]

 

[bigredfish]