Oil Up 4% on Chinese service employment doesn't make sense. What's Up ?

[SKEP + 229]

Something else must be rumored.

Anyone ?

Edited September 4, 2019 by SKEP

[macrotourist35 0]

Some chatter of Refinitiv reporting a 7mb draw in tomorrow's DoE report. The move began way after the China data came out. 

[James Regan + 1,776]

Slackos took a day off, let see tomorrow 

[Marcin + 519]

"

Oil Up 4% on Chinese service employment doesn't make sense. What's Up ?

 

Why is doesn't ? China is the single largest source of increase in crude oil demand in latest 20 years. Their thirst for crude oil became really huge in the last decade.

In 2008 the world consumed 4.0 billion tons of crude oil and in 2018 4.5 billion t, 500 million t increase.

In 2008 crude oil consumption in China 377 Mt and in 2018 628 million tons, 250 million t increase , that is 50% of 500 million.

And this is only start, as yearly per capita crude oil consumption in China in 2018 was only 0.45 t, while average for middle income countries is about 1.0 t per capita, and for high income countries it is from  1.3 t per capita (France, Germany) to even 2.75 t per capita (United States).

and China using 1 t per capita a year means 1400 million t, so another ~800 million t of demand on top of current 628 million t.

 

[SKEP + 229]

1 minute ago, Marcin said:

"

Oil Up 4% on Chinese service employment doesn't make sense. What's Up ?

 

Why is doesn't ? China is the single largest source of increase in crude oil demand in latest 20 years. Their thirst for crude oil became really huge in the last decade.

In 2008 the world consumed 4.0 billion tons of crude oil and in 2018 4.5 billion t, 500 million t increase.

In 2008 crude oil consumption in China 377 Mt and in 2018 628 million tons, 250 million t increase , that is 50% of 500 million.

And this is only start, as yearly per capita crude oil consumption in China in 2018 was only 0.45 t, while average for middle income countries is about 1.0 t per capita, and for high income countries it is from  1.3 t per capita (France, Germany) to even 2.75 t per capita (United States).

and China using 1 t per capita a year means 1400 million t, so another ~800 million t of demand on top of current 628 million t.

 

Nah