Who Canceled the Oil Apocalypse?

 

Someone quietly absorbed the biggest supply shock in oil market history. It wasn't who or why you think.....

In normal times, China buys more crude from abroad than India, Japan, and South Korea combined. So when it pulled back its imports after the Strait of Hormuz closed, the effect was enormous. JPMorgan found that China alone accounted for 74% of the entire global decline in crude trade.

And of course, every barrel China didn’t buy was a barrel freed up for everyone else.

Remember our doomsday arithmetic? The world was short 5.5 million barrels a day. China cut 4.9. Just like that, the gap was all but gone.

Which is how, without announcing a thing, China saved the world from $200 oil.....

https://www.snafuinvesting.com/p/who-canceled-the-oil-apocalypse 

...To appreciate just how extraordinary that is: if India had to fill a hole that size from its strategic reserve, it would run dry in about a week. America’s (the envy of the world, built up over decades) would last under five months. Most countries measure their emergency reserves in days or weeks. China measures them in years.

So if you were wondering why everyone (but China) spent the first month of the war convinced the sky was falling, that’s why.

The world genuinely did need saving.

Now you know who saved it, and how.

As for why they did it... well, that’s next week’s Part 2. As you probably suspect, it wasn’t out of the goodness of their hearts.