{"id":24096,"date":"2017-05-29T20:48:14","date_gmt":"2017-05-30T01:48:14","guid":{"rendered":"http:\/\/olduvai.ca\/?p=24096"},"modified":"2017-05-29T20:48:14","modified_gmt":"2017-05-30T01:48:14","slug":"not-opec-china-dictates-the-oil-prices","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=24096","title":{"rendered":"Not OPEC, China Dictates The Oil Prices"},"content":{"rendered":"<h3><a href=\"http:\/\/oilprice.com\/Energy\/Crude-Oil\/Not-OPEC-China-Dictates-The-Oil-Prices.html\">Not OPEC, China Dictates The Oil Prices<\/a><\/h3>\n<picture><img decoding=\"async\" class=\"singleArticle__articleImage\" title=\"oil rigs\" src=\"http:\/\/cdn.oilprice.com\/a\/img\/content\/article\/718x300\/adcf4a81cc3a2da72e0b412600cde678.jpg\" alt=\"oil rigs\" \/><\/picture>\n<div id=\"article-content\" class=\"wysiwyg clear\">\n<p>The OPEC deal will lead to an ongoing tightening of the crude oil market, putting a floor beneath crude prices in the $50s per barrel in the second half of 2017, according to Helima Croft of RBC Capital Markets. She <a href=\"http:\/\/www.cnbc.com\/2017\/05\/25\/oil-prices-should-grind-higher-into-the-60s-later-this-year-rbcs-croft-says.html\">said<\/a> that prices should ultimately \u201cgrind higher into the $60s\u201d by the fourth quarter, with an average price for WTI expected at $61. Political and economic pressure surrounding Saudi Aramco\u2019s IPO and Russian elections \u2013 both of which are slated for 2018 \u2013 will ensure that OPEC and non-OPEC does \u201cwhatever it takes\u201d to keep oil prices stable and on the rise.<\/p>\n<p>But there are a lot of factors outside of OPEC\u2019s control. High up on that list is the role of China, a country that has received little attention in the oil world as of late amid all the furor over the OPEC vs. U.S. shale debate. But China could make or break the oil market this year and next, depending on what happens with its economy. &#8220;<em>If you wanted to know where the downside risk is, it is not in OPEC&#8217;s decision or in U.S. driving demand or in global inventories rebalancing. I think China is the big source of concern,&#8221;<\/em>Prestige Economics President Jason Schenker told <a href=\"http:\/\/www.cnbc.com\/2017\/05\/24\/up.html\">CNBC<\/a>.<\/p>\n<p>Moody\u2019s Investors Service <a href=\"http:\/\/www.cnbc.com\/2017\/05\/23\/moodys-downgrades-china-rating-to-a1-from-aa3-with-stable-outlook.html\">downgraded<\/a> China\u2019s credit rating on May 24 to A1 from Aa3, explaining that the Chinese government might try to juice the economy with higher spending levels, which will lead to ballooning debt. The decision from Moody\u2019s is ominous as it is the first credit downgrade for China in nearly three decades. Moody\u2019s expects economic growth to continue to slow in China, putting a heavier burden on government stimulus when debt has already started to become a concern.<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Not OPEC, China Dictates The Oil Prices The OPEC deal will lead to an ongoing tightening of the crude oil market, putting a floor beneath crude prices in the $50s per barrel in the second half of 2017, according to Helima Croft of RBC Capital Markets. She said that prices should ultimately \u201cgrind higher into [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[3],"tags":[130,6010,594,5332,600,846],"class_list":["post-24096","post","type-post","status-publish","format-standard","hentry","category-energy-2","tag-china","tag-nick-cunningham","tag-oil-prices","tag-oilprice-com","tag-opec","tag-us-shale-oil"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/24096","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=24096"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/24096\/revisions"}],"predecessor-version":[{"id":24097,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/24096\/revisions\/24097"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=24096"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=24096"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=24096"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}