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Meanwhile, This Is Who Is Quietly Buying All The Cheap Oil
With the US Shale Oil industry up in arms, Venezuela screaming, and Russia awkwardly quiet (as the Ruble slides with the falling oil price stabilizing domestic inflows), the 'secret' Saudi-US oil deal that pressured prices for crude down to $80 (18-month lows today) has 'hurt' a lot of the world's producer nations. However, as Bloomberg reports, there is one nation that is very grateful. The number of supertankers sailing toward China’s ports surged to a nine-month high as over 80 very large crude carriers (VLCCs) - the industry’s biggest ships - sail toward the Asian country’s ports. At an average of 2 million barrels each, the 160 million barrels will help refill China's 727 million barrel SPR which it started in 2012.
There are 89 tankers sailing for Chinese ports, 80 of which are VLCCs - the highest since January 3rd.
The number of supertankers sailing toward China’s ports surged to a nine-month high amid speculation an oil-price slump is encouraging the world’s second-biggest crude importer to accelerate purchases.
There are 80 very large crude carriers, the industry’s biggest ships, sailing toward the Asian country’s ports, according to IHS Fairplay vessel-tracking signals compiled by Bloomberg at about 10 a.m. today. That’s the highest since Jan. 3. Average shipments are 2 million barrels.
Brent crude, the global benchmark, plunged to a four-year low yesterday amid speculation Saudi Arabia, Kuwait and other nations in the Organization of Petroleum Exporting Countries won’t curb production. The slump is likely encouraging buying to fill China’s strategic stocks, according to Energy Aspects Ltd., a London-based consultant.
“There’s a lot of bargain hunting going on,” Richard Mallinson, an analyst at Energy Aspects, said by phone. “Whilst prices are low we think there’ll be buying for Strategic Petroleum Reserve filling and also just trying to capture these discounted crudes.”
...
The 80 bound for China compare with an average of 63 for the past two years and match a record in data that started in October 2011.
* * *
In summary, just like Chinese gold imports rise when the price of gold drops; so China does the logical thing with other commodities, (i.e. oil) when prices tumble and instead of selling into the paper rout, it buys all the physical it can get its hands on.
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Fill Baby Fill...
And yet prices are barely holding $80 as we speak
Elsewhere: Rosie O'Donnell (!) defends Monica, blasts Bill
http://tinyurl.com/khjfcgn
Fuck Rosie O'Donnell (figuratively)
She and Bill Mahr are two of the most Offensive People....
off topic from rosie and bill but i was intrigued that the chinese spr is exactly as big as that of the u.s.:
Strategic Petroleum Reserve | Department of Energy - U.S. ...
energy.gov/fe/services/petroleum.../strategic-petroleum-reserve
The Strategic Petroleum Reserve (SPR) is the world's largest supply of emergency crude ... The SPR's formidable size (capacity of 727 million barrels) makes it a ...
Makes sense to keep it "topped off" in uncertain times
You just never know... some day you may turn on the MSM news to find your nation accused of torturing lesbians or something... next thing you know America has declared war on you....
Listen.
Don't you mean black colored Jewish lesbians with "FREEDOM" tattoos?
with metal, oil, and unemployment plummeting to astonishing new lows, it's time we all join together in the upcoming election and vote for tptb.
security.
prosperity.
together.
brought to you by the friends of tptb
hello, I'm tptb and I approve this message.
Free Stuff?
Where's the free stuff?
It's everywhere.
If the money is free, how does the "stuff" you later receive in trade for that money cost anything?
The only thing more dangerous than a bankster in pursuit of profit, is a bankster who doesn't even care about the profit.
The only question is whether the oil buyers are also persons of (strategic) interest (corporate or governmental) to The Party.
Currency pegs are funny things. None of this would be possible without the Fed's wanton increase of the money supply.
As it stands, you (and a lot of others) are paying for their crude oil shopping spree.
And the only way for the USSA or the banksters to beat "them" is to endure the pain and pay the piper, instead of kicking the can.
When Neocon geopolitics and Austrian economics intersect, you have entered the Twilight Zone.
I'd rather not hear about them..
and was off topic besides..
War on wominses!
And yet Rosie will vote for Hillary.
Her ilk don't know their mouth from their bunghole.
Bill Clinton is a duplicitous Macbeth, but Hillary is his Lady Macbeth.
In the NWO oil IS black gold... ?
Law of Unintended Consequences is a Bitch.
Push gold prices lower
China buys in Bulk
Push Oil prices lower
China buys in Bulk
Say thank you, Obie
Frank roo Hobie!
Not only buys in bulk, but gets the goods at a discount and gets rid of those pesky USDs that will devalue some day at the same time. This is nothing but win.
Obviously stagged. Why are not WE buying for the SR's? We will see hyper-DEFLATION soon when millions lose their IRA accounts to scammers that go BKR because the purpose of ending QE was just that. Kudos to the PTB for thinking of this evil plan that will off millions of useless eaters.
Doesn't this time resonate with 2008?
China: short human rights, long common sense
This should be their country slogan.
It's funny; I read somewhere how the song, "Internationale" used to be one of the PRC's keynote themes:
http://en.wikipedia.org/wiki/The_Internationale
How is having a population of a billion low IQ dog eating ricebots even close to having common sense?
The spirit of Murica is among us.
Have you taken a look at our country lately? The Chinese are buying up real assets (edit: and energy) hand over fist. We're buying up apps.
Right now the Chinese act & talk way more inteligently than the Americans. Just saying...
Wait until your low IQ exceptionals get hungry...
better worry about your own country.
btw I not fan of chine
Krugman would disagree with this policy.
Dear China,
Now that you have it all, can we borrow some?
Thanks,
The Rothschild banksters.
An American, not US subject.
Oil is a declining commodity .
Cheaper energy alternatives have been found .
The low oil price is due to lack of speculator's interest .
Similar argument to
http://andreswhy.blogspot.com/2012/06/fracking-and-oil-price.html
Only more so .
http://andreswhy.blogspot.com/2014/09/rogue-swan-tech.html
The only thing that can undercut oil in the future is nuclear.
Nucleau Fusion I might add.
Nuclear Fusion - the King of all Vaporware. "Just another few years... really! We got it this time!"
There has been some enabling technology in very fast high energy switching in the last few years.
Updated Prospects for Commercial Nuclear Fusion
http://nextbigfuture.com/2014/10/updated-prospects-for-commercial.html
http://www.forbes.com/sites/markgibbs/2013/05/20/finally-independent-tes...
Looks like it might be real after all.
Saudis have reduced, not expanded output.
They are simply selling it at lower price, so it forces banks to dump oil from storage held there as collateral uber rehypotheticated for derivatives.
So, extra output is coming from storage oil dumped from banks and hedge funds, not from saudis
Isis is selling it at $25-40 per barrel, hence market will converge to that price
China wants to dump as much USD as possible and keep commodities as reserves, not USD.
At about 6 million barrels per day consumption, 160 million barrels is just 25 days of consumption
Maybe these tankers are going there for commodity collateral financing deals.
Same as with anything else like iron ore, copper etc
"So, extra output is coming from storage oil dumped from banks and hedge funds, not from saudis
"
Bollucks.
Saudi crude production isn't being bought because it is overpriced and crap.
http://oilprice.com/Energy/Oil-Prices/How-And-When-Will-Saudi-Arabia-Res...
China is just filling their SOR with cheap, non saudi oil.
It is quite cute providing an internet link as proof of something
So, I will be cuter
http://www.menafn.com/1093987272/Saudi-oil-exports-at-3year-low#.VEd1jBf...
There is a reason I very rarely provide links. Because most is propaganda
This is the link I meant to link.
http://mobile.bloomberg.com/news/2014-10-22/china-cuts-saudi-oil-imports...
Bloomberg has been caught several times doing propaganda.
One I can recall was the bombastic lie that Germany had accepted its gold to stay at NY Fed
"Bloomberg has been caught several times doing propaganda."
That is a logical fallacy.
China has been making a move in Columbia for quite some time.
http://www.thedeal.com/content/energy/sinochem-buys-total-colombian-oil-...
We live in a world of fallacy
ISIL sets the price? Douche
I am stupid
Yes. You are.
finally one smart player...
Takes a mountain of energy to make a mountain of energy.
China is just a consumer and therefore not a net beneficiary of lower oil prices as it does not create final demand through economic growth.
The USA is by far the biggest beneficiary of a global collapse in both oil and natural gas prices as these prices feed directly into industrial use and capacity...first andforemost driving more energy production thus sustaining the lower price.
One would be a fool not to be in sourcing of pretty much everything into the USA right now as it is the low cost leader. Even with the dollar surging.
Lest we forget there is a war going on...quite poorly I might add. But the production lines remain open. You can build some pretty bad ass shit with energy prices this low and materials prices having collapsed.
Just caddies in China look good here.
Trying to export food out of the USA just got a lot more expensive too. Good luck finding stable sources of supply with Russia and Ukraine going toe to toe now.
I still think we're gonna get a solid 20% correction minimum in equities now that we know Canada is as incompetent as the USA is. These are DOMESTIC terrorists folks.
Sell,sell,sell...
Leave it to ISIS to sell oil for what it's worth. Free from the banker price manipulation. Where can I get me some a that turrist oil?
Sure if you steal what isn't yours, you can sell it for way less than it is worth because it cost you nothing.
How is it stealing exactly? They conquered the lands that hold the oil. How is the completely fake bullshit "royal family" in Saudi Arabia any different?
Look at all the tea the Brits nicked from China.
Oh, wait a minute. They paid for it with opium that they nicked from india.
My bad.
we give you cheap oil and you don't sell our debt..or we give you land, manufacturing, PM's and africa, oil,coal & you get control of the eastern pacific,but you must buy& keep our debt ..(opium we got if you need that too)
interesting correlations appearing. the price of gold(and silver) drops down to western extraction costs in the face of record bullion demand from asia. don't forget china is probably the world's biggest gold miners(the debeers of gold?) and oil drops to zero margin on record asia demand. put this in perspective, china growing, at even, 5% is multiples better than the usa economy contracting as a result, for the chinese.
what does this mean besides removing the 1941 japanese conundrum as a military strategic play? the chinese play go, by the way. the fn chinese rule the world!lol! as niall furgeson(sp) remarked, "it is no fun growng up in a collapsing empire." or there abouts.
the talk about the saudis controlling the price of oil is on its head. the chinese control the price of oil now, and gold, just as the customer always has.
One thing for sure, the drop in price is due to dumping oil that has already been produced, not oil that will be produced and once that oil is all gone, the oil that is being produced will be back over $100 quickly. They never threaten SPR dumping if there is a surplus and yet they are threatening SPR dumping.
consider this play. normally oil is fungible. what if china uses existing contracts for oil from russia and iran to disrupt the open market price enough to maintain a lower price for its "on the books" supply? especially now that oil is readily bought with exdollars and gold?
i don't think they care that it pressures wti because an improved usa consumer market exoil is good for china.
yes/no?
What a concept........
Buy low????????????
Have patience and buy when the price drops to your price.....
Maybe we can all learn from the china dudes.................
I doubt I will.........
i can't remember which s. am. co. soros was in with that durning the drilling ban, i.e. bp spill america loaned several billion to help them drill, because it will be good for america, and even better for soros.
was it columbia, or brazil, the countries selling to china now?
Lacking oil contracts and the distrust of City of London / Washington DC.
Same jackasses telling us $100 / barrel is the magic number to falsify earning gains.
The game is about up for the installed DNC Traitors hoping to sit on the global table.
Today's gamble in Canada was to arrange the North American Union Pack. We don't have any terrorist threats, just Washington, DC think tanks dreaming up a new crisis.
Council of Foreign Relations. Extremely bad people hired onto the staff. They ask for American financial aid and wear a kosher dish on their heads.
Sick fucks galore.
I used to play the Submarine war game Silent Service.. those Tankers are big fat Torpedo Targets.
I have no idea why that popped into my Head... :)
Imagine the ocean with 160 million barrels of oil floating on its surface.
Priceless.
160 million barrels of oil. It's actually difficult to imagine how much that is.
Why are we always trying to help China? We give them cheap gold, we give them cheap silver, we sent most of our investment capital and jobs to them, and now we give them cheap oil.
Perhaps Saudi Arabia has another secret oil deal. With China.
China SPR fill could help rebalance market, support oil prices: analyst Singapore (Platts)
CLOSE TO 90% OF CURRENT SPR CAPACITY FILLED
The bank estimates that China's SPR level had reached 204 million barrels by August, equivalent to 30 days of imports. This was about 40 million barrels higher compared with the end of 2013.
Phase 1 of China's SPR, totaling 103 million barrels, is widely believed to have been filled by 2009 when oil prices were well under $100/barrel.
This means China will have additional 129 million barrels of phase 2 capacity coming online by the end of 2016, according to the report.
"China will need 571 million barrels of storage by 2015 and 714 million barrels of oil in storage by 2020 to cover 90 days of import, which requires aggressive infrastructure build-out post 2016," Bernstein said.
http://www.platts.com/latest-news/oil/singapore/china-spr-fill-could-help-rebalance-market-support-26911399
If over 170 million barrels of oil, bought and paid for, are in tankers heading to China's SPR, it begs the question: if that oil was unsold, still on the shelf, adding to today's supply of oil on the market, how much lower would the price of oil be today?
I, for one, do not buy the theory that the falling oil price is the result of the 'secret' Saudi-US oil deal to pressure the rouble down. If there was a 'secret' Saudi-US deal, it was foremost to rescue Europe from a triple (and maybe terminal)-dip recession and America from what ever lying-lie Washington is currently calling its mess.
The secret deal is wishful thinking.
A jingoistic hope that the US was clever enough to score a coup resulting in the weakening of the rouble.
The fact is that the price of oil is falling not only because of an oversupply of crude, BUT BECAUSE OF A GLOBAL EVAPORATION OF DEMAND.
cant upvote you so..plus 1
Looks like competition among the oil families. That's not good.
China buys everything good. We buy shit.
Let it stay at < $80 for a few months and watch Putin's face turn green
http://www.businessinsider.com/russia-will-be-plunged-into-a-recession-i...
let it stay under $80 and watch the Bakken play shutdown.
who would be worse off Russia?, Amerka?, Saudi?, Amerka is my answer.
fracking going to stop within weeks at the present price level. consequence for USSA?
i wonder if a fracking slowdown is correlated to the sudden interest in coal miners ?
Yep - China the communists are so smart - buying up all the oil at $80 per bbl. Nevermind that production is going through the roof and we have a glut.
But China's brilliance also surfaced with gold, buying mass amounts at 1920 and all the way down to current levels. Gold will never get to 600 again - LMFAO. Never.
Should be entertaining to watch China implode soon.
I guess buying the S&P minis and derivatives is smarter!!!!! Pretty ignorant comments you make.
production glut!!! hahahaha.
http://www.zerohedge.com/news/2014-10-20/houston-we-have-fracking-problem
http://www.zerohedge.com/news/2014-09-25/fracked-dont-believe-miracles
Oil prices are manipulated like everything else. Some people naively assume supply/demand has something to do with it. Nope. When consumer demand for manufactured goods gets low the usa, china, etc., drive fuel prices down in hopes consumers will go on a spending spree elsewhere. the fact that it hurts russia is a bonus. they often squeeze refinery margins for the same reason.
Listen 99.
Let me be real clear. The USSA controls their economy and inflation by manipulating pump price "AND" crude price.
When the need to juice the economy they "FORCE" price downward.
Black gold.
Can't rule the world on MSG alone.
No flies on the Chinese, they have just dumped another load of dollars in front of the US's eyes.
Gold, oil, overseas real estate and infrastructure, got to turn them oneday probably worthless dollars into something better before anyone puts two and two together.