SaxoTV

Why China's oil hoarding will keep prices up

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July 09, 2014 crude, oil, oil and gas, oil commodities, oil demand, oil drop, oil industry, oil inventories, oil market, oil markets, oil news, oil price, oil prices, oil production, oil refinery, oil spread, oil stockpiles, oil stocks, oil supplies, oil supply, oil trading, oil wealth, ole hansen, saxo tv, tradingfloor.com
China’s insatiable thirst for oil will continue to prop up prices for the rest of the year, according to Saxo Bank's Head of Commodity Strategy Ole Hansen. The latest OPEC oil market report data is due out this week and is expected to show that China is still stockpiling hundreds of thousands of barrels every day.

The Chinese strategic oil reserve is nowhere near as large as in the US. The States has around three months of oil in reserve while China's stockpile is thought to equal around three weeks of demand.

Ole Hansen says that the oil price would be supported above the one hundred USD level by this continuing Chinese stockpiling operation. Of the almost seven million barrels of oil China imports daily it's estimated that, at times, almost a quarter is being added to the growing reserve.