Last week, China announced the release of some crude oil from its strategic oil depot and the sale of Bloomberg. Called “Unprecedented intervention.
In fact, this is the first time that China has started selling oil from its strategic reserve. It is unknown at this time what he will do after leaving the post.
The reason for the move is, of course, Fuel prices. With more than $ 70 a barrel, raw material seems to be too expensive for Beijing last month after producer inflation peaked 13 years ago. The report, citing China’s National Food and Strategic Reserve Administration, said the sale would “stabilize domestic supply and demand and ensure the country’s energy efficiency.”
The world’s largest economy has grown so far this year 8.44 percent, Like the rest of the world, has been struggling with high raw material prices for months. Unlike the rest of the world, it has lifts when it is determined to be sufficient.
Interestingly, this may not be the first time China has sold strategic reserve oil. However, it was Amr Sen who first announced the energy features He told him Financial Times.
“This is not new, but the advertisement is new and I think it will be an attempt by them to reduce domestic prices,” Sen explained.
Interestingly, according to a report in the Financial Times, the first such announcement was made shortly after the OPEC + meeting. According to Reuters columnist Clyid Russell Put it, The sale of oil was all about the message, not the oil itself.
Inflation seems to be on the rise since the outbreak, especially at a time when the world’s largest crude oil importers are fluctuating. Former Indian Oil Minister Darmandra Pradhan was quick and vocal in his response to any OPEC move to raise prices, especially in New Delhi.
India has responded to some of these measures by ordering state inspectors to suspend purchases from oil producers in the Middle East. China is also distributing diversified suppliers. India is now selling strategic reserve oil. In fact, China announced the sale a few weeks ago. Purpose of sale Reported At the time, it was renting a place for the tenants, but it could have been intentional or not Result On prices.
“The Chinese government is very concerned about inflation [so] You are doing this. According to the FT, they were releasing strategic stocks of each raw material.
Inflation is a cause for concern – not just in China – Some countries have stockpiles to mitigate the effects of inflation. However, removing the barrels from the strategic reserve cannot be interpreted as a warning to OPEC.
While rising oil prices are one of the biggest causes of inflation, OPEC + has maintained its initial target of no more than 400,000 bpd on the combined results until it returns to pre-epidemic levels. This, meanwhile, according to OPEC’s latest monthly Report, The demand is set to exceed the pre-epidemic levels next year.
OPEC + does not respond to additional product calls and if this forecast is lost, prices will go up. And this can lead to more complex inflation for big importers because strategic stocks, while plentiful, are still limited.
By Irina Slav for Oilprice.com
More Top Readings from Oilprice.com