China has been preparing for a looong time for what is coming, as regular I. U. readers are well aware.
Winter is coming!
Yes, even though China’s economy remains (for now) in the doldrums, Beijing keeps buying up every barrel it can find just as it keeps on stockpiling every other type of commodity…
China currently holds 96% of global copper inventories, 75% of global aluminum, 70% of corn, 54% of wheat, 30% of soybeans and 22% of crude oil: JPM
— zerohedge (@zerohedge) January 24, 2023
… almost as if it is preparing for war.
Indeed, China’s endgame intentions aside, Reuters reports while that the country’s record crude oil processing and robust imports in August have painted a bullish picture of demand in the world’s largest importer, “what is largely ignored, but shouldn’t be, is the vast quantities of oil flowing into inventories.”
Citing official data, Reuters calculated that China added about 1.32 million barrels per day to either commercial or strategic crude stockpiles in August, with Platts calculating that China’s crude inventory – comprising commercial and SPR – hit a record high 1.142 billion barrels in July. This comes at a time when similar US crude inventories have dropped to just over 770 million barrels, and are rapidly depleting.
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