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Low Prices Spark Biggest Surge In Chinese Crude Imports Ever

Tyler Durden's picture




 

Despite the collapse of several key industries (cough Steel & Construction cough), as we have discussed in detail related to the record number of VLCCs charging towards China, Chinese crude oil imports surged by almost 5 million barrels in December - the most on record. This 19.5% surge MoM (and 13.4% YoY) indicates significant efforts to fill the nation's strategic reserve but - absent this 'artificial' demand - spells problems for an already over-supplied global oil market (and its near record contango).

A record surge in crude imports in December...

 

And think what prices would have done if this 'demand' was not there...

 

Charts: Bloomberg

 

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Tue, 01/13/2015 - 09:09 | 5654869 Chad_the_short_...
Chad_the_short_seller's picture

buy as much oil as you can but make sure it's only coming from russia

Tue, 01/13/2015 - 09:43 | 5654950 wallstreetapost...
wallstreetaposteriori's picture

They must be dumping the oil in the water hoping it hits Japan.....like nuclear waste everywhere isn't enough?  Dumb Chinese.

Tue, 01/13/2015 - 10:31 | 5655079 Occident Mortal
Occident Mortal's picture

Is that final chart saying that China's crude imports have doubled since 2009? In the space of 5 years?

Tue, 01/13/2015 - 12:28 | 5655534 RealistDuJour
RealistDuJour's picture

Yes, yes it is.  Zero just illustrated us another duo of zinger charts... one to "prove" the doom and gloom short term, and nary a word on the huge long term potential.  Wonder where Chinese demand will be in another 5 years as the burgeoning middle class begins to grow?

Or you can stick with the same old "short term" doom and gloom view since 2009 and turn into a bitter bitter person as you miss out on, well, EVERYTHING.

Tue, 01/13/2015 - 12:36 | 5655556 AvoidingTaxation
AvoidingTaxation's picture

Sure, let's meet the burgeoning middle class of China in 5 years. Let's time I was in Shenzen there was a guy WITHOUT HIS FACE and only a mouth and one nostril because his parents had pured acid on his face so that he can better beg.

Tue, 01/13/2015 - 13:35 | 5655807 JAFAH
JAFAH's picture

Yea, you see that all the time in Shenzen. And the strange misshapen limbs in Delhi. And the knockout game.

Oh the horror!

Tue, 01/13/2015 - 09:11 | 5654874 NoDebt
NoDebt's picture

Wait.  You're saying there were actual supply and demand issues involved in the price of crude oil?  Impossible.

Tue, 01/13/2015 - 09:16 | 5654886 Headbanger
Headbanger's picture

No.. It's INCONCEIVABLE!!

Tue, 01/13/2015 - 11:49 | 5655388 divingengineer
divingengineer's picture

You keep using that word.  

Tue, 01/13/2015 - 12:40 | 5655577 SystemOfaDrown
SystemOfaDrown's picture

Since it goes against the 'fear-mongering' diversion narrative say hello to the plug-stop term: 'artifical' demand. So please don't entertain critical thinking, they don't like that. 

Tue, 01/13/2015 - 09:11 | 5654875 Took Red Pill
Took Red Pill's picture

gold goes down, the Chinese stock up. Oil, same thing. Buy it while its cheap!

Tue, 01/13/2015 - 09:58 | 5654984 Rakshas
Rakshas's picture

....imagine a world where monopoly money can be used to buy anything ..... hey.......

Tue, 01/13/2015 - 11:52 | 5655401 divingengineer
divingengineer's picture

Gold, real estate, farm land, art, anything.  If I had any money, I'd sure as hell be swapping it for real stuff right now. 

Tue, 01/13/2015 - 09:12 | 5654876 JustObserving
JustObserving's picture

Chinese oil consumption increased by 0.4 million barrels per day in December.  The oil surplus was only 1 million barrels per day to begin with.  Increased oil consumption in US and India will easily handle any other surplus in production.

Of course, China, US and India only account for only 35% of world oil consumption.  Oil consumption will go up everywhere and the surplus production has already been soaked up.

Tue, 01/13/2015 - 09:13 | 5654879 Refuse-Resist
Refuse-Resist's picture

For what scenario might Chinese leadership be preparing? Hmm...

Tue, 01/13/2015 - 09:28 | 5654905 Bernoulli
Bernoulli's picture

Good question. Let's look at what they physically have (to keep):

- Factories to fabricate all the crap anyone would ever want in the world

- Transport and Power Infrastructure (not so good quality, ok, but still)

- Third strongest military power after US and Russia (cough, cough)

- A lot of physical Gold (it seems)

- Strategic oil reserves plus a new gas-rich BFF (cough, cough)

... aaaaand (drumroll).....

$1.25 trillion in U.S. debt (to sell)

Sounds like a hell of a party to me...

 

 

PS: Oh and so much for everyone and their dog betting on a stronger dollar...

 

 

Tue, 01/13/2015 - 10:14 | 5655022 Bopper09
Bopper09's picture

And what Team America has,

McDonalds, fuck yah,

Wal Mart, fuck yah,

Baseball, fuck yah,

The NFL, fuck yah,

Rock and Roll, fuck yah,

The internet, fuck yah,

Slavery..... Fuck, yah.

Tue, 01/13/2015 - 11:15 | 5655255 FreeShitter
FreeShitter's picture

and fat bitchez....bitches!

Tue, 01/13/2015 - 09:16 | 5654888 buzzsaw99
buzzsaw99's picture

those charts and this article don't make any sense. china imports roughly 6 million barrels per day.

Tue, 01/13/2015 - 09:24 | 5654896 wrs1
wrs1's picture

6mmbbl/day is almost all of the Saudi export total.   Maybe that is barrels per week?

Tue, 01/13/2015 - 09:16 | 5654892 wrs1
wrs1's picture

Why would you say it's artificial demand?  If the chinese don't have much shale or oil then they are simply paying a low price to have it moved to their country while there is a surplus.  The stupid arabs are giving them a huge gift.   When they suck the arabs dry, and they willl because the arabs have conventional fields and no water to frac even if they had shale.  Once those conventional fields are done, it's over for the arabs.  Those fields are running dry.  It's a matterof time, the Chinese are simply looking ahead and knowing for now, there is no alternative to oil and they are spending the $ they have in surplus.

Tue, 01/13/2015 - 09:52 | 5654967 the6thBook
the6thBook's picture

It is artificial because the Chinese government is buying it, not Chinese business or consumers.  You are making the assumptions that the world is running out of oil, which has been proven wrong again and again.

Tue, 01/13/2015 - 10:12 | 5655018 Rakshas
Rakshas's picture

Please, where is this abundant oil supply that you infer exists?  I hear it time and again but being in the belly of the beast we see things abit differently so if it is not too much trouble would you please........... present some credentials to back up your inference .......

 

Tue, 01/13/2015 - 11:55 | 5655403 Consuelo
Consuelo's picture

Please, where is the data that every 10 sq. mile patch of Earth has been deep imaged or ground-radared or drill stemmed...?

Tue, 01/13/2015 - 11:20 | 5655269 wrs1
wrs1's picture

Where did I maket the assumption the world was running out of oil?  The Germans have NO OIL, are they running out?  No, they just don't have it and China doesn't have nearly enough to cover their needs.  Please read my post more carefully befeore attemtpting to put words in my mouth.  It's not artificial demand, the Chinese govt wouldn't be buying it at higher prices.  It's based on the current price and the confidende of the Chinese govt that they will be able to use that oil when prices are higher later.

Tue, 01/13/2015 - 10:47 | 5655152 Obama LaForge
Obama LaForge's picture

Once those oil fields are done, it's over for everybody. 

Tue, 01/13/2015 - 09:18 | 5654893 Nex
Nex's picture

Oil will be higher if there is no so demand from China

Tue, 01/13/2015 - 09:28 | 5654909 Mi Naem
Mi Naem's picture

f123, I think your moniker is perfectly Orwellian. 

And, that you are overpaid. 

 

Tue, 01/13/2015 - 13:48 | 5655870 JAFAH
JAFAH's picture

6-year high. 6 years ago, was umm 2009? And inflation has been declining for 6 years in Russia until the oil crash of 2015, kinda like the oil crash of 2009? And thats news because....

Oh, because the last crash was a "global financial crisis" and this is a "Suadi conspiracy"?

I'll look into it further and get back to you.

Tue, 01/13/2015 - 09:25 | 5654902 Panic Mode
Panic Mode's picture

That's China though, never let a crisis goes to waste. Oil is cheap, buy & store. Gold is cheap, buy & store. 

Tue, 01/13/2015 - 09:40 | 5654944 Bopper09
Bopper09's picture

Wierd how grade 3 math works, eh.  Americans will wait until oil hits $150, then borrow money to stockpile

Tue, 01/13/2015 - 09:30 | 5654912 css1971
css1971's picture

US "leadership" checklist for dealing with Putin.

Load slug.

Rack shell into the chamber.

Take careful aim.

Blow a gaping hole in own foot.

Tue, 01/13/2015 - 09:41 | 5654943 techstrategy
techstrategy's picture

If you had $5T in UST and 15K tons of gold,  would you not build the SPR with as much underpriced oil as you could before transitioning away from the USD (where there is no upside to exports)?  ALL of the global moves wreak of trying to minimize dislocations from reserve transition...  ZH is awesome,  but definitely ignoring supply and demand fundamentals with oil (overly focused on predatory takedown...).  What's going on right now is financial sector players using the washout to secure real assets and real options. 

Tue, 01/13/2015 - 09:46 | 5654955 q99x2
q99x2's picture

Awh Blankfein has the logistics on how to buy all the oil and then pump it all back into the ground after taking profits. I say BTFD

Tue, 01/13/2015 - 10:10 | 5655008 NoWayJose
NoWayJose's picture

With Goldman's call this week, the drive down from $50 has lots of TBTF fingerprints all over it!

Tue, 01/13/2015 - 10:03 | 5654996 papaswamp
papaswamp's picture

Nice thing about crude is if properly stored..lasts a long time. Bank for hard times.

Tue, 01/13/2015 - 10:06 | 5655004 NoWayJose
NoWayJose's picture

Obama needs to do what China is doing - add to the Strategic Petroleum Reserves. If not, he risks collapsing the US economy.

Tue, 01/13/2015 - 10:15 | 5655025 NoWayJose
NoWayJose's picture

Canadian rigs down 25%, US rigs down 15% - how much more of a cut do they want? The US is not like Saudi Arabia - we do not have a national oil quota to control. Each company produces (or not).

Tue, 01/13/2015 - 10:33 | 5655089 oddjob
oddjob's picture

According to Bloomberg, when the Chinese actually buy Oil its 'artificial demand', but when the CME sells paper silver its normal supply.

Tue, 01/13/2015 - 11:51 | 5655392 Consuelo
Consuelo's picture

+1 Beautiful -

 

Tue, 01/13/2015 - 12:56 | 5655621 post turtle saver
post turtle saver's picture

lol awesome +1

Tue, 01/13/2015 - 10:37 | 5655103 Element
Element's picture

I'm guessing Financial Sense University's Jim Puplava, is feeling a bit sheepish about his predictions in 2010-2011, of a late 2014 to early 2015 Peak-Oil induced price explosion, due to scarcity at any price., and the collapse of the developed world.

Cheer up Jim, you may be half right, for all the wrong reasons yet.  

Tue, 01/13/2015 - 11:49 | 5655390 Consuelo
Consuelo's picture

No guessing needed Element...   I see you too caught on to the bullshit over there - or should I say, $$$Fee-seekers...?   Poop-lava's entire staff was All Over the 'Peek-oil' theme during the lows of yesterday - but not any more...!!!   A 180 degree spin...   Can't blame them in a way I guess - after all, they're there to make $$$Fees, but there must have been a staff meeting or something long about 2011/2012, because since then, they (and many of their guests) have done a Full-On Hugh-Hendry and it must have been like a Jim Jones Guyana moment with a freaking Jelly-Belly jar full of the blue ones...

Tue, 01/13/2015 - 11:48 | 5655379 divingengineer
divingengineer's picture

They buy when its cheap?

Sheesh! These guys just don't get it.  

 

Tue, 01/13/2015 - 14:44 | 5656271 SmittyinLA
SmittyinLA's picture

newsflash they're NOT stockpiling oil, can't, no capacity for storage or excess supply, my storage is my vehicle tank, damn Chinese Capitalists fucking up Obama's EU Socialist Ukraine Carbon tax powerplay, worse they're also consuming in Africa and India too. 

Even Yazidis are buying cars for the first time ever.

Enemy alien President 

If things get dicey......Will Putin rat out the Kenyan and his minions? 

Stay  tuned to tomorrow for as the world turns 

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