[Tikib]

http://www.bloomberg.com/news/articles/ ... eper-slump

[Tikib]

read the article maybe.

[Tikib]

Theres no conspiracy China is just creating a very large strategic reserve. The headline is overly dramatic.

[Tikib]

China is essentially acting like a battery, trying to to reduce the volatility which is predicted by models at this point in the oil depletion process.

[efarmer]

US SPR capacity is 700 million barrels, China is building toward their own SPR at < 500 million barrels by 2016 or so. When I eat Chinese in the near future, I will request a wok blackened and carbonized egg roll in your honor and leave it by the shrine in the restaurant in your honor for such a dandy, flaming, thread title.

[Tikib]

Bloombergs name not mine...

[yellowcanoe]

Have to laugh at the title of this thread. China hasn't been able to get any of "their" oil from the Alberta tar sands as none of the pipeline projects have gone anywhere. Northern Gateway appears to be dead in the water. Kinder-Morgan is still going through the regulatory process. Keystone-XL has been stonewalled by Obama.

[dissident]

The usual "us vs. them" BS from the precious "free" media. When NATO governments say jump, the NATO media asks how high.

[penury]

Propaganda, they hoard we have a petroleum reserve. Remember: you are stubborn, she is pg headed, I am resolute.

[ROCKMAN]

Tikib - Read the article. Their numbers: China is "hoarding" 500,000 bbls of oil per day. That's 0.6% of the current global oil production that China is "stealing" from the market place. To each his own but I have a different concept of hoarding. Such as the cruel hoarding of Blue Bell ice cream going on in Texas right now: on my last two trips to the store the shelves were empty. How the hell can I hoard my fair share if others are beating me out? LOL.

[dolanbaker]

I have a 900 litre heating oil tank, I just got 500 litres of heating oil (first purchase in over 2 years), am I hoarding?
My guess is that the average Chang is simply stocking up on fuel while it is cheap.

[Subjectivist]

$this->bbcode_second_pass_quote('dolanbaker', 'I') have a 900 litre heating oil tank, I just got 500 litres of heating oil (first purchase in over 2 years), am I hoarding?
My guess is that the average Chang is simply stocking up on fuel while it is cheap.

[AgentR11]

$this->bbcode_second_pass_quote('ROCKMAN', 'T')ikib - Read the article. Their numbers: China is "hoarding" 500,000 bbls of oil per day. That's 0.6% of the current global oil production that China is "stealing" from the market place. To each his own but I have a different concept of hoarding. Such as the cruel hoarding of Blue Bell ice cream going on in Texas right now: on my last two trips to the store the shelves were empty. How the hell can I hoard my fair share if others are beating me out? LOL.

[GoghGoner]

Not only filling inventories, they are also exporting diesel at a record rate.

[Revi]

Interesting that China is exporting diesel. With our fracking we are producing lots of condensate, which can't be changed into diesel, so we need that stuff!

[kublikhan]

$this->bbcode_second_pass_quote('Revi', 'I')nteresting that China is exporting diesel. With our fracking we are producing lots of condensate, which can't be changed into diesel, so we need that stuff!

[ROCKMAN]

k - Great post. I know the details of the refining process can tend to bore folks but unless one understands some of the details (such as the ones you just pointed out) it's going to be difficult to understand the global dynamics. Such as the simple fact that for decades there has been a constant trade between Europe and the US. EU refiners yield more gasoline then local demand and US refiners do likewise with diesel. Thus a very natural trade. But now we have China (and to some extent the KSA) getting into the refinery business big time.

And one more reminder: those numbers about US oil consumption include approx. 1 BILLION bbls of oil we "consume" yearly which is refined here but all the products are exported overseas. Yes: about 3 million bbls/day of our "consumption" is being used to supply foreign consumers.