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8 Jan 2015
China increasing its crude purchase, but why? – Malcolm Graham-Wood
FXStreet (Barcelona) - Independent Analyst, Malcolm Graham-Wood, notes that recent preliminary data confirms his view that China is increasing Crude purchases to build strategic reserves.
Key Quotes
“Yesterday the oil price just wasn’t quite sure which way to hang and right up to the end of trading Brent might not have had its first up day of the year.”
“Also, WTI flirted with support levels hitting $46.83 at one stage. As I have said before this is no time to be clutching at straws but if you want a couple here they are.”
“The preliminary data from China looks like it might confirm my view that the country is not only increasing its purchases of crude but buying for strategic reserves as well. December numbers will show that the price fall might have been much worse if it wasn’t for such buying. Secondly and this is the shortest of straws, tomorrow sees the index re-balancing which will involve forced buying of mainly Brent oil.”
Key Quotes
“Yesterday the oil price just wasn’t quite sure which way to hang and right up to the end of trading Brent might not have had its first up day of the year.”
“Also, WTI flirted with support levels hitting $46.83 at one stage. As I have said before this is no time to be clutching at straws but if you want a couple here they are.”
“The preliminary data from China looks like it might confirm my view that the country is not only increasing its purchases of crude but buying for strategic reserves as well. December numbers will show that the price fall might have been much worse if it wasn’t for such buying. Secondly and this is the shortest of straws, tomorrow sees the index re-balancing which will involve forced buying of mainly Brent oil.”