{"id":43424,"date":"2019-02-01T20:01:09","date_gmt":"2019-02-02T01:01:09","guid":{"rendered":"https:\/\/olduvai.ca\/?p=43424"},"modified":"2019-02-01T20:01:14","modified_gmt":"2019-02-02T01:01:14","slug":"the-next-big-threat-for-oil-comes-from-china","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=43424","title":{"rendered":"The Next Big Threat For Oil Comes From China"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\"><a href=\"https:\/\/oilprice.com\/Energy\/Oil-Prices\/The-Next-Big-Threat-For-Oil-Comes-From-China.html\">The Next Big Threat For Oil Comes From China<\/a><\/h3>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/d32r1sh890xpii.cloudfront.net\/article\/718x300\/aade841357bb0e936d9cb2f5458df5d5.jpg\" alt=\"Dalian China\"\/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">There is a widespread concern in the world regarding China\u2019s decelerating economic growth. The slowdown, if it continues, threatens economic activity almost everywhere. Growth in Germany, for example, has already cooled due to its exports of high-quality machinery to China dropping precipitously.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Those in the oil market also worry about China. The country\u2019s economic growth has been a key driver of global crude oil consumption. Indeed, China accounts for one-third of the International Energy Agency\u2019s projected 2019 increase in world oil use.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Weak Chinese economic growth is not the end of the oil market\u2019s prospective ills, however. Few recognize the additional trouble on tap from the Chinese independent refiners affectionally known as \u201cteapots.\u201d The danger occurs because lower oil demand growth in China comes just when independent refining capacity there is rising. The capacity growth has been financed primarily by debt, most likely supplied by China\u2019s alternative lenders. As demand slows, these refiners will turn to international markets, dumping products in Singapore, the Americas, or Europe to earn hard cash. In doing so, they could plunge the global refining industry into a serious recession and drive crude prices down sharply.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This will not be the first time that refineries in Asia caused a crisis in the oil sector. In 1997, Korean refiners did the same during the Asian financial collapse. That incident is described in the December\u00a01997\u00a0<em>Oil Market Intelligence<\/em>\u00a0(<em>OMI<\/em>). The report begins by noting that Korean refiners had begun to seek exports markets before the crisis hit \u201cmostly to employ 620,000 b\/d of new refining capacity that came on stream since late 1966.\u201d The effort intensified as domestic consumption collapsed:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&nbsp;\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Next Big Threat For Oil Comes From China There is a widespread concern in the world regarding China\u2019s decelerating economic growth. The slowdown, if it continues, threatens economic activity almost everywhere. Growth in Germany, for example, has already cooled due to its exports of high-quality machinery to China dropping precipitously. Those in the oil [&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":[2,3],"tags":[130,588,24268],"class_list":["post-43424","post","type-post","status-publish","format-standard","hentry","category-economics","category-energy-2","tag-china","tag-oil","tag-philip-verleger"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/43424","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=43424"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/43424\/revisions"}],"predecessor-version":[{"id":43425,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/43424\/revisions\/43425"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=43424"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=43424"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=43424"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}