Oil Crisis Just Got Real: Sinopec (Read China) Cuts Off Oil Exports

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Thu, 04/21/2011 - 02:06 | 1191412 tickhound
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"Now you's can't leave"

Thu, 04/21/2011 - 03:01 | 1191494 SilverRhino
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China is preparing for war.

Thu, 04/21/2011 - 03:08 | 1191513 Michael
Michael's picture

Lindsey Williams says the elites plan to drive oil over $200 a barrel by whatever means necessary and double cross the Arabs by defaulting on the treasury debt they hold. Book it, it will happen period.!

Thu, 04/21/2011 - 07:23 | 1191717 spiral_eyes
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the one problem i can find with lindsey williams' thesis is that i don't believe in the extent of north american oil reserves that he talks about. and even if he's right, bringing the capacity online will be a long and black swan-prone process. so if the kissinger people wanna try and default on treasuries, i think america will lose a lot of energy and industrial capacity, hastening hyperinflation.

Thu, 04/21/2011 - 09:06 | 1191936 oklaboy
oklaboy's picture

I concur, our Industrial and manufacturing base is crumling, and turning it around will be lengthy and painful

Thu, 04/21/2011 - 11:06 | 1192374 Sweet Chicken
Sweet Chicken's picture

Not if there truly is a WWIII in the making.

Thu, 04/21/2011 - 13:20 | 1192926 Ahmeexnal
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US oil reserves are greater than estimated.

Ellis Wyatt is obtaining shale oil cheaper than arab oil with his new technology.

But...he's on strike.

Thu, 04/21/2011 - 06:23 | 1191666 Popo
Popo's picture

China isn't doing anything of the sort.  This whole post is a non-story.  China is a massive net IMPORTER of oil.   Saying that China is cutting off exports of oil is like saying Finland is cutting off its exports of coconuts.  Please.  

Let's get back to the collapse of capitalism and the onset of global chaos that's actually underway....

Thu, 04/21/2011 - 06:26 | 1191674 True.North
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+$5.00

Thu, 04/21/2011 - 06:29 | 1191677 Dental Floss Tycoon
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+1

You nailed it.  Viet Nam and Indonesia will be squeezed but that's about it.

Thu, 04/21/2011 - 06:38 | 1191683 Popo
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The only thing of relevance one can infer from this story is that China predicts oil prices to go up (no big shocker there), and that they are increasing reserves to offset future volatility.    Increasing supplies is just prudent energy policy meant to preserve economic stability, not a shot across the bow.

One could just as easily commend China for this move, as it insures greater supply chain integrity in the face of potential global economic instability/oil supply shocks.  ...But that wouldn't have the same sensationalist fear factor, as "oh noes, shit just got real".

With all of the global economic/political chaos/collapse that's *actually* happening, why does ZH have to jump the shark like this?

Thu, 04/21/2011 - 07:09 | 1191702 youngman
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I think what they are doing is controlling a corner of the market...China has been investing in oil companies...fields ..and countries..what they are saying is that any oil they are producing around the world goes to them....not the rest of the world...sort of like silver going from registered to Eligible......its not a fungible product anymore....they are trying to corner the world market in every commodity...

Thu, 04/21/2011 - 07:59 | 1191761 EvlTheCat
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It is an inevitable fact when you have multiple personalities at the helm.  Thanks for the sanity check!

Thu, 04/21/2011 - 07:59 | 1191758 dearth vader
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Sorry dude, you're mixing up 'oil' and 'refined oil products'.

Fri, 04/22/2011 - 08:05 | 1195639 Coast Watcher
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Read the article again. China is cutting its exports of *refined* product, not crude. My guess would be as a domestic buffer against future price increases.

Thu, 04/21/2011 - 06:19 | 1191670 topcallingtroll
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Dude, did you quit taking your medicines again?

Thu, 04/21/2011 - 10:55 | 1192319 immalittlepunchy
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classic scene. love that line.

Fri, 04/22/2011 - 13:33 | 1196637 onarga74
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I think that's youns and it couldn't have an apostrophe cause the word has over 4 letters

Thu, 04/21/2011 - 02:13 | 1191421 Mr Lennon Hendrix
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Demand for sea water is not only high in Japan, but in the House of Saud too.

Saudi Arabia did not make up for Libyan oil:

http://www.theoildrum.com/node/7801

Thu, 04/21/2011 - 04:05 | 1191556 Pondmaster
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Libyan = sweet crude

Saudi - sour watered down sludge

Thu, 04/21/2011 - 04:27 | 1191573 Urban Redneck
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The real sludge comes from the Orinoco belt and the Canadian tar sands to feed the US markets. 

Sinopec & CNOOC production is still offline in Libya as far as I know, and the firms have also been making investments in Nigerian E&P (land o' bonny light), and just about anywhere else they can find oil.   

Thu, 04/21/2011 - 08:37 | 1191817 Chuck Walla
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The Chinese get it and are moving heaven and earth to ensure their supply of oil. Contrast to the idiots running the US asylum. They do everything possible to kill supply until it pisses the voters off. The Child in Chief apparently needs one more term to complete the irreparable damage. Cutting supply also satisfies the Fabian impetus to eugenincs, starvation can rid the world of a lot of undesirables. The new Nazis command the DNC. The world is only fed by the supply of cheap oil.

Thu, 04/21/2011 - 02:16 | 1191428 OldPhart
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Owwie, this is going to leave a mark.

Thu, 04/21/2011 - 02:22 | 1191434 buzzsaw99
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This move is meant to control fuel prices and trucker strikes. China is a net importer of oil. They better subsidise too.

Thu, 04/21/2011 - 02:24 | 1191442 litoralkey
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Three day old news that crossed the Bloomberg ticker for several hours.

Sinopec is exporting diesel while subisidizing diesel internally.

Sinopec had to cut exports last Nov/Dec for same reasons.

looks like the value of the exports has lost utility value versus the placating of the internal political situation.

Since Sinopec is subsidizing the only interesting point is which princelings or state owned enterprises get the newly available supplies at below market prices?

If Sinpec isn't breaking delivery contracts I don't see this as too noteworthy outside of the small increase in demand due to inefficiencies of subsidies.

 

Thu, 04/21/2011 - 03:03 | 1191499 SilverRhino
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Could also be a move to placate the truckers strike going on right now as well.

Thu, 04/21/2011 - 08:48 | 1191862 slewie the pi-rat
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Bingo!  the commie party "leadership" cuts off its "partners" in trading oil &tc for yuan and non-dollars while telling its truckers to hammer down their rubber duckies:  we're gonna have us a con-voy!

slewie wants the "i remember the 70's" hat to go with his "$50 BiCHeZ" T shirt!

Thu, 04/21/2011 - 03:01 | 1191500 SilverRhino
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Could also be a move to placate the truckers strike going on right now as well.

Thu, 04/21/2011 - 05:43 | 1191626 tonyw
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China has been a net oil importer since the mid 90s, here's a good site that allows you to easily see any country's production and consumption for energy sources (coal, oil, gas, nuclear & hydro):

http://mazamascience.com/OilExport/

Thu, 04/21/2011 - 02:33 | 1191456 A Man without Q...
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Well, people will just have to stay home and watch Youtube clips of where they want to drive on their iPads...

Thu, 04/21/2011 - 04:59 | 1191464 Sudden Debt
Sudden Debt's picture

They do this because it's a easy way to subsidise their domestic oil and prevent a rioting population.

It sure looks like the chinese inflation still has some room to move up :)

 

CHINESE FIREWORKS BITCHEZ!!

FUCK SAFETY LABELS!

 

 

Thu, 04/21/2011 - 06:06 | 1191652 Antarctico
Antarctico's picture

FUCK SAFETY LABELS!


I must still have sleep in my eyes because I just read this as FUCK SAFETY BALLS! which is not accurate, but is funnier. ;D

Thu, 04/21/2011 - 07:33 | 1191722 FreeMoney Bernie
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Fuck safety anything have you seen the price of cocomuts since Finland quit exporting them?

Thu, 04/21/2011 - 02:45 | 1191474 Peak Everything
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This is bullshit reporting. How many fucking barrels of oil products have they historically exported?. There is no way to tell from this article what the magnitude of the possible problem is.

Thu, 04/21/2011 - 03:39 | 1191530 Cassandra Syndrome
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China exports about half a million Barrels a day, less than 1%. However Libya exports 1.5 Million Barrels a day and look at how much the market freaked out over that tits up.

Thu, 04/21/2011 - 03:54 | 1191547 jomama
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meh, that's a drop in the bucket.  figuratively speaking, of course.

Fri, 04/22/2011 - 08:05 | 1195643 Coast Watcher
Coast Watcher's picture

"Drop in the bucket"? More like the straw that breaks the camel's back.

Thu, 04/21/2011 - 07:35 | 1191723 FreeMoney Bernie
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somebody ask the same question above about Finland and coconuts and now Fiji cannot afford the price of coconuts

Thu, 04/21/2011 - 03:30 | 1191528 Cassandra Syndrome
Cassandra Syndrome's picture

 

This is good news, right? Bloomberg proves again that the Broken Window is the way forward.

http://noir.bloomberg.com/apps/news?pid=20601087&sid=aaWYfGCnMLjY&pos=4

Bennie can print the oil futures now with the new Apple applications, everything is under control. Sit back and relax folks...

 

Thu, 04/21/2011 - 03:32 | 1191529 BlackholeDivestment
BlackholeDivestment's picture

Yeah, I remember the 70's http://www.youtube.com/watch?v=be_BeqiDigo but, there is a Kink in the things ''just got real''. Shit has hit the fan and already flown off. This is the Shit in your face moment. http://www.debka.com/article/20858/

 

Thu, 04/21/2011 - 04:27 | 1191572 UnBearorBull
UnBearorBull's picture

Just read your link. Lot going on that could get weird.

How reliable is that source?

Thu, 04/21/2011 - 06:22 | 1191671 BlackholeDivestment
BlackholeDivestment's picture

...about as reliable as the dollar. All kidding aside, who would pay for Paki Rats, that store your reported (2?) nukes, to fight the nuke building Iranians that wan't to blow you up, after you just obtained $60+ billion worth of American arms? It's not as if there is any counter intelligence going on or any pre emptive calls for a Nuclear NonPROLIFEration Nobel Prize manwavers from the likes of Rose Mary's Baby (AKA Hussein of Babylon) and the lunatic fringe. http://www.youtube.com/watch?v=oI8ZoWrUrCs&feature=related  I see a Muslim on Muslim war (already on) and a major event. Yes, a quick fearfull slaughter large enough to get all the nations and Israel at the peace table. A false peace that lasts about half as long as the agreement looks about right. An event may happen just in time to affect the 2012 election and the end of QE2, as Comet Elenin is close in September, around the second week, like the 11th possibly eh?

Speculation...  watch.

Thu, 04/21/2011 - 05:06 | 1191603 Sudden Debt
Sudden Debt's picture

Abdullah will soon be handled. That's pretty much clear richt now.

LET'S GET ALL FACEBOOK ON HIM AND TWITTER HIS ASS!!

 

 

Thu, 04/21/2011 - 06:20 | 1191668 topcallingtroll
topcallingtroll's picture

That'll show him.
Teach him a lesson he wont soon forget.

Thu, 04/21/2011 - 07:37 | 1191727 FreeMoney Bernie
FreeMoney Bernie's picture

that is not allowed in my country without a vail or is it vale or maybe veil. Oh shit just leave by ass alone.

Thu, 04/21/2011 - 05:20 | 1191611 Youri Carma
Youri Carma's picture
The "miserable" Arab found out about the US trying to stick a knive in their backs. They wised up and now try to fight the US by getting close to Pakistan and China.

THIS IS AN HUGE DEVOLPEMENT see:

Webster Tarpley: Revolutions or CIA Putsch Campaign in the Middle East? - Alex Jones Tv 1/2 http://youtu.be/ULTap4JbEE4

Webster Tarpley: Revolutions or CIA Putsch Campaign in the Middle East? - Alex Jones Tv 2/2 http://youtu.be/RRpB_Nlx9kQ

'Libyan civilians, new WMD for NATO' http://youtu.be/hWHwwfBbJ1k

Thu, 04/21/2011 - 15:45 | 1193668 Money Squid
Money Squid's picture

Tarpley used to post frequently here, not as an official contributor, but as member. Its been a while since I saw him post a I forgot his screen name. For thest types of issues I always appreciate his perspective.

Fri, 04/22/2011 - 08:15 | 1195652 Coast Watcher
Coast Watcher's picture

I usually treat Debka with some suspicion, since it's a long been suspected as a Mossad disinformation source. This report makes a certain amount of sense, if you strip away the over-the-top alarmism. Iran has been meddling in Arabian Peninsula politics lately, so it's logical that SA and others would react with some vigor. Given Iran's military strength, though, SA should be prepared for serious losses in its oil infrastructure if it goes forward with a militry confrontation.

 

Thu, 04/21/2011 - 03:49 | 1191537 Gyro Gearloose
Gyro Gearloose's picture

I remember the 1970s very well.  Very long lines of cars backed up on the streets at all the gas stations with your license plate number determining whether you could get gas or not.  Every other day was the only time you could fill up (odd & even#s) unless ya got creative and "borrowed" someone else's plate and 20 to 40 minute waits to get to the pump.

Thu, 04/21/2011 - 03:52 | 1191545 jomama
jomama's picture

i'm curious what their impact on the us economy would be in terms of a percentage of daily usage?

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