Chinese Crude Imports Remain At All Time High For Third Month In A Row

Tyler Durden's picture

Overnight Chinese trade data came in modestly disappointing, with imports rising just 5.3% on expectations of 9% increase. However one area where imports certainly did not decline, is commodities, and especially crude. As the chart below shows, Chinese crude imports in March were virtually unchanged from February's all time high (and same as January), and while the bpd number was slightly lower due to fewer days in the month at 5.50, one thing is clear: every ounce of oil that the rest of the world does not want, China will rapaciously import and stockpile. Good luck to Saudi Arabia with perpetuating the lie that it can boost its production by 2.5 million bpd to offset Iran. And even if it can, we at least know who will be waving it all in.

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LawsofPhysics's picture

No energy, no economy.  China knows what's up, and they have a few mouths to feed.  The U.S. should ask for gold in exchange for the next shipment of coal or sorbeans.  China wants the reserve currency, I'll call their bluff, let them have it and let it be backed by gold.  America can make another fortune selling resources for gold, fucking bring it!

GetZeeGold's picture

 

 

It's like they're burning through the stuff.

 

SilverRhino's picture

They're also building a strategic reserve. 

Caggge's picture

I guess if I had a choice I would buy oil instead of US fiat debt paper.

Quinvarius's picture

The US Government has the same bunker mentality as Hitler did when it comes to economics and finance.  Secluded in their bubble, they have imaginary money, that exists only on paper or in computers, that move around on an imagined battlefield, winning imaginary battles.  They sell gold cheap in exchange for paper that they themselves print endlessly.  If you can call that kind of stupidity a victory, it is a pyrrhic one at best. 

GeneMarchbanks's picture

Been meaning to point to some things so that you're not confused, see here:

http://theeconomiccollapseblog.com/archives/the-number-one-u-s-export-to...

Now, I know they don't mean USTs when they say 'waste paper' but let's face it, they might as well. You see, this 'relationship' is lopsided so any question of gold is asinine. Beyond asinine. China is making plans, Anglosphere is panicking, that doesn't mean China is without crises in the near future. But the long term trend is still China over US.

LawsofPhysics's picture

Again, everything that you site only further strengthens the argument that this will be a great time for producers everywhere, not just in China.  Anyone who creates anything of real value will do just fine, regardless of the bullshit paper being exchanged.  Again, I do business in China and hold a significant amout of RMB, go ahead China, let it float and let's see how competitive you are and how much more purchasing power I have.  I welcome it.  It will make the bribes that much more affordable.

GeneMarchbanks's picture

The 'producers' don't balance out, see the deficit. Glad that you hold the RMB, but most Americans don't even know what the RMB is.

Huge dislocation in the Chimerica relation. RMB won't guarantee anything since there might be a pan Asian currency coming after the SDRs prove a failure.

Reread your own statements. You're confused about 'purchasing power'.

 

LawsofPhysics's picture

No confusion here, I hold PMs too and if you don't think China is easing, you are a fool.  China buys a lot of our produce, should I ask for gold in excange instead of dollars or RMB?  Answer that smart guy, because that is what will happen should China get the reserve currency and that currency not be back by a gold standard.

AnAnonymous's picture

Anyone who creates anything of real value will do just fine

________________________________________

The FED with its monopoly on USD issuance will do extra fine by this standard.

silverdragon's picture

5.3% aint half bad.

Jason T's picture

global wealth shift .. like lightening it will strike when the West wakes up and realizes the wealth moved to the East.  Tis why gas prices are up..and food. 

Got RMB?

LawsofPhysics's picture

"Got RMB?"

************

Is it backed by gold?  If not, it is just another paper promise.  Good luck to all the Chinese producers when the RMB strenghtens.  China wants the world's reserve currency, let them have it.  Many of us will front run the shit out of this (and already are), fucking bring it.

Jason T's picture

it's backed by labor, manufacturing, energy production, car production, rare earth metals, solar panels and everything else they dominate in.  

What's backing the treasury bond Bernake holds that was used to pay for food stamps?  .. anyone?

francis_sawyer's picture

It's pegged to the dollar (for now)... China & the US sink or swim together...

Jason T's picture

Swim together?  Have you seen what's been happening to oil refining capacity??  Closing up in the US and opening up in China.  

LawsofPhysics's picture

"labor, manufacturing, energy production, car production, rare earth metals, solar panels and everything else they dominate in"

---------------------------------

All of which are extremely sensitive to fluctuations in input costs and currency fluctutions.  Labor will not remain cheap if the RMB strengthens-FAIL.  All of these inputs are extremely volitile in a centrally-planned world.  Guess what, China is a centrally planned socialist state-FAIL.  They are on the path to being the #1 economy but have come to a fork in the road and must make a choice, in order to have the reserve currency they must have transparency.  Now you tell me, how do you think that will go down with power brokers in China?  I do business in China, corruption does not even begin to remotely cover what goes on.  In order to install or open any sort of facility, the bribes are directly proportional to the size of the investment.  You really think this is how the world wants to operate?  FAIL.  Fine by me, all economies end up being local.  When the RMB strengthens and chinese labor is no longer competitive, countries around the world will adopt the same polices.  China wants to open a plant in America, pay the bribes etc.  Oh, you want to farm my land for chinese food production? pay the bribes in gold bitchez. Fucking bring it.  ALL economies are local, what backs treasuries?  For now, the most advance military in the world.  On a local scale, a shitload of private, well-armed, U.S. tenants who are holding those treasuries in their retirement accounts, many of whom know the real cost of war because they are vets.  You seem to think there will be absolutely no blowback from the coming collapse (I agree the treasury market is a bubble).  Bullshit, the end result will be economies becoming more Chinese and more local than you can imagine.  China is going to need massive Capital to simply pay the bribes in the world they are seeking to create/conquer.  fucking bring it, it will be a boom for real producers everywhere, not just in China.

Chinese propaganda checkers out in force today I see.  It's that kind of "efficinency" that still prevents the socialist, centrally planned state from getting the world's reserve currency.

SheepDog-One's picture

And we in our great central planning wisdom will NOT stockpile oil....oh no....we will use our oil reserves as a weak short lived political tool....hey we got a dictator that needs to win himself an election you know!

pocomotion's picture

China is tripling it's oil reserves.  Hard times ahead for the world.

Dr. Engali's picture

China is stockpiling oil while we are releasing oil. Man we have some idiots in "leadership".

LawsofPhysics's picture

I agree, they should be exchanging it for gold and maybe some RMB.

i-dog's picture

Ummm ... I think the US might lose that gambit, if China were to, in return, demand gold or RMB for all of the iPads and other "necessities" that the US imports from China.

LawsofPhysics's picture

...then the U.S. will move the manufacturing plants back.  See how easy that is.  When you have done business in China and not had to pay any bribes, let me know.

It is pretty clear to me that China (a socialist centrally planned country) made a deal with the devil (the U.S.) some time ago and now they want their soul back.  History shows how this will turn out, hedge accordingly.

GeneMarchbanks's picture

'...then the U.S. will move the manufacturing plants back.'

LOL. I'm in tears over here. +1

LawsofPhysics's picture

Says the same guy who says the RMB will "strengthen".

Now how does a stronger currency affect those labor costs again?

GeneMarchbanks's picture

RMB won't guarantee anything since there might be a pan Asian currency coming after the SDRs prove a failure.

I said no such fucking thing. But it does divert attention from your nonsensical argument nicely, doesn't it?

 

i-dog's picture

Yes, I/we do [lots of] business in China, and without paying bribes. Have done so since you were a little boy.

Yes...China did do a deal with the devil, and the circus is moving on -- but not back to the US. That ship has sailed.

No US worker will accept (or can afford to accept) $2/hour, and no developing country will import US products made with $12+/hour labour. Get back to me when Apple reports moving manufacturing back to the US.

LawsofPhysics's picture

45% "surcharge" on the last 800 L fermentor we installed in China, still no explanation on what this charge was for.

I call bullshit.

i-dog's picture

  "I call bullshit."

LOL...translation: No other arguments.

Check my previous posts on China (google can be your friend). I was on one of the first VIP delegations into China (the very first into southwest China...caused quite a stir among locals who'd never seen a 6'5" blonde before!) after Mao kicked the bucket...and have been doing business there ever since.

If you don't have relationships, then you pay bribes....

Quinvarius's picture

But they know how to win an election.  Isn't that more important?

the 300000000th percent's picture

I guess Obummer will have to put sanctions on China for foiling their plans

Mr Lennon Hendrix's picture

Luckily we have so many reserves to tap; so let's get to destroying the last few naturally abundand areas just to squeeze out a few more years of oil!  Canada is leaving us in the dust, by the way, destroying the world's largest fresh water aquifir to get tar sands, which have a horrible EROEI, by the way.  Come on, let's destroy the beautiful Rocky Mountains and get some gas!  Let's pollute our water tables and destroy Alaska for a decade more of crude!  Come on!

Flakmeister's picture

You know that 1.8 trillion barrels that supposedly exist? Well this was the best overview I have come across (IIRC, from the floor of the Senate no less)....

... Pound per pound, oil shale contains just one-tenth the energy of crude oil, one-sixth that of coal, and one-fourth that of recycled phone books. Shale outcrops are common in Colorado, but in prehistoric times the Utes did not use it for heat; why bother when you could gather pine or juniper instead? In poor countries, millions of people heat their homes with dried manure. Dung cakes have four times more energy than does oil shale. Oil shale is a fossil fuel—but just barely. Searching for appropriate low-calorie analogues, we turn to foodstuffs, the realm of Weight Watchers. Oil shale is said to be “rich” when it contains 30 gallons of petroleum per ton. An equal weight of granola contains three times more energy. The “vast,” “immense,” and “unrivaled” deposits of shale buried in Utah and Colorado have the energy density of a baked potato. If someone told you there were a trillion tons of tater tots buried 1,000 feet-deep, would you rush to dig them up? Take a memo, Senator. Oil shale has one-third the energy density of Cap’n Crunch, but no one is counting on Kellogg to become a major energy producer soon. In other words, no one is drilling in the cereal aisle. The mystery is not that we lack an oil shale industry—it’s why we’ve spent billions trying to develop one.

Life of Illusion's picture

 

 

3 t more paper dollars to go.

singapore oil traders must be loving this

 

the 300000000th percent's picture

Time to put natural gas tanks in cars and install filling stations, lets put America back to work doing something real. Its the fuel of the future for us we have huge reserves of nat gas because we cant export it, its too fluffy. And you could fill up right now for about the equivilent of about 75 cents a gallon to gasoline. Of course that would go up if demand went up but it would still come in lower than gasoline on the wolrd market price

Monedas's picture

China is stock piling Natural Gas in extinct volcanoes in giant silk bags !  Monedas   2012   Life is a gas !

lolmao500's picture

Well...

http://articles.businessinsider.com/2012-04-09/news/31311454_1_russian-d...

Russia Is Massing Troops On Iran's Northern Border And Waiting For A Western Attack

The Russian military anticipates that an attack will occur on Iran by the summer and has developed an action plan to move Russian troops through neighboring Georgia to stage in Armenia, which borders on the Islamic republic, according to informed Russian sources.

"Iran is our neighbor," Rogozin said. "If Iran is involved in any military action, it's a direct threat to our security." Rogozin now is the deputy Russian prime minister and is regarded as anti-Western.

http://www.haaretz.com/blogs/the-axis-haaretz-iran-blog/small-window-of-... Small window of opportunity for a strike on Iran If recent reports of a Netanyahu promise to postpone an attack on Iran until the fall are true, a possible strike would correspond with the pivotal weeks just before the American presidential election.
While this is going on: Turkey massing troops on #Syria-n border.

http://twitter.com/#!/syriancommando

 Turkey accuses Syria of "clear violation of common border" after Syrian troops opened fire on refugee camp

http://twitter.com/#!/SkyNewsBreak

i-dog's picture

"Syrian troops opened fire on refugee camp"

The CIA...erm, Mossad...erm, Muslim Brotherhood...erm, Syrian government...erm, "somebody in Syrian uniforms" strikes again!

Sandmann's picture

The Russians are more concerned with Iranian terrorism in Central Asia stirring up Muslim populations. Both Turkey and Iran are dabbling in Central Asia and with a US base there and also Israeli jets being stationed in the area for a strike against Iran, the Russians are protecting their interests not those of Iran

Scalaris's picture

China needs fuel in order to power the machinery used to demolish its 5 year-old buildings, in order to build its even newer buildings, in order to keep the teat which feeds the local government's cronies filled, in order to keep its credit bubble inflated, in order to maintain economic order, in order to keep the quasi-communist system in place, in order to prevent the transformation of a totally capitalist system by the Bo Xilai / Rothschild / Soros fraction in China.

 

CrashisOptimistic's picture

Some of this increase is a filling of the Chinese SPR.  Their consumption is big, yes, and some is moving oil from underground one place to underground another place.

But there's another factor almost invisible.

Chinese domestic oil production is a very closely guarded state secret.  It may be falling.

BeerBrewer09's picture

Bullish on bullshit for BTUs.

vxpatel's picture

Would be interesting to see this chart vs GDP.

papaswamp's picture

Someone is building a hefty strategic reserve. Coupled with the cover story on the Economist this week....hmmm.

overmedicatedundersexed's picture

reuters has reported on closing of refineries down the east coast usa. this trend is blackist of black swans..get ready for $8.00 gas and oil..how anyone can ignore nat gas prices and this item and buy into this stock market is just jaw dropping. We never had a rebound in the economy without nat gas prices moving much higher.

if the refiners cannot be profitable at these gas prices and no rebound in nat gas..the old economic model is so broken and we are living on the debt bubble. 

KandiRaverHipster's picture

are you talking about the SUNOCO refinery in philadelphia?  it's not closed, SUNOCO is looking for someone to buy it from them.  but it won't happen.  someone is going to buy it...SUNOCO just wants out of a business with low margins so they can earn higher margins using their pipeline network to transport the refined fuels coming out of the same refinery they are trying to sell

flyingpigg's picture

right...

Like ConocoPhillips trying to sell Wilhelmshaven refinery in 2010 before closing it down and LyondellBasell trying to sell the Berre refinery last year before closing it down. It's probably easier to sell Spanish bonds these days.

KandiRaverHipster's picture

how is another fiat currency like RMB different from something such as gold (besides the "physical" part) if in the end you are holding either to sustain/increase/hedge the amount of USD you have to spend on real goods in the United States?  ahh the conundrum!