bump
China has strategies for the future unlike B.Hussein. They say the next world war will be over resources.
Prices are good right now. China’s been buying commodities across the board they have massive amounts of foreign reserves just sitting there otherwise. Looks like three options for them. demand increases and they make a killing, massive internal bank defaults on the widespread speculation, or armed conflict. Considering the massive influence they have on dollar denominated commodities, the rush to purchase them could be taken as widespread belief in dollar weakening. Probably a sound bet IMO.
Death to ChiNazi
Eh, every barrel more of oil produced is one more barrel of oil on the market.
If we’re too d@mn stupid to look around to boost production, then we shouldn’t be b@tching when someone else fills our shoes.
The header is a fine example of economic and political illiteracy. The Chinese aren’t locking up reserves at today’s prices. (This would be a lot like saying the majors locked up Saudi oil 60 years ago - which is now being sold at market prices by Aramco, the Saudi national oil company). They are merely committing to spending huge sums of money to explore for oil, after which the host countries will decide at what price they want to sell it. Nothing is locked in. When prices go up, the producing countries will jack their prices up or simply nationalize* the oil fields. When prices go down, China will renege on its commitments. Meanwhile, demand is crashing, due to simultaneous economic contractions in Japan, Europe and the US, which account for 60% of world oil consumption, compared to China’s 10%. Prices will follow crashing demand.
* Ask China what Chavez did to Chinese investments in Venezuela.