If China's economy slows down will that HELP the oil situation?
Answers
3963 points
MNSL answered one year ago …
There is no doubt oil will come back to @70/barell level sooner than later not only because of slow down in the world economy including China but also due to other factors.
When George Soros say oil and other commodities is in bubble stage then we have to think seriously. He knows commodity market and speculation very well than normal investors. I do not want to write more about Soros because intelligent investor knows very well about him.
Then I heard that Goldman Sach's oil analyst Arjun Murti has predicted: oil prises are going to plummet to nearly $75/barrel. Weeks before they said it is going to go $200/barell isn’t it?
I think average investors should be very careful and should make profit in every rally before burst this commodity market. I think Energy sector and Grain sector are over valued and they are in the bubble stag now. It is better to monitor trading and derivative instruments of top investors, investment banks etc now.
2775 points
Oldman answered one year ago …
i don't think that it will help at all - PTR's profits are legislated away, China's energy usage is < 1/3 of India's...the emerging frontier markets of Vietnam, Middle East and other "below-the-radar" areas have a very rapid oil demand-growth; many former exporting countries have stopped selling oil, because they need it for their own use (Indonesia, e.g.); deep-water and oil-sands production of petrol may not ameliorate supply needs for 5-10 years. China geets a lot of "attention", but not enough is paid to the rest of the world!
Read more from Oldman678 points
BoxCar answered one year ago …
BRICK and US consume most of world's oil supply and are driving demand.
Problem is not that we've run out of OIL, we have run out of CHEAP OIL
Read 1998 Scientific American article "The End of Cheap Oil" states we
should see the end of cheap oil within 10 years- Are we there yet?? Soros or not
Corporate America knows its $50/barrel to dig oil out of Tar Sands & Shale Oil.
Why should they allow oil to drop below $100 then, it don't make sense it would.
158 points
marketdrop answered one year ago …
I think China will use less oil after they realize the environmental effects from the exhaust plus the overloaded pollution that China contributes. They will not cut down untill the public demands it. This will not happen tomorrow but in the next 5 years changes will happen .
Read more from marketdrop2775 points
Oldman answered one year ago …
I don't believe that China's "demand" will slow, even if their GDP growth slows to half of what it is. Besides, the big Asian country that uses 3x more imported oil than China, is India. Their problem is refining capacity, and soon the Reliant refinery, the world's largest, will be operational.
However. perceptions or beliefs "fuel" the futures markets...so any hype can affect pricing.
