The Oil Price Crash and Economic Slow Down in China

[Raúl Ilargi Meijer]

This is another essay from friend and regular contributor of The Automatic Earth, Euan Mearns at Energy Matters. One comment on my part: Euan says ‘Th
[See the full post at: The Oil Price Crash and Economic Slow Down in China]

[Euan Mearns]

Roel, thanks for cross posting this. Regarding your introductory narrative. This stems from a few posts I have written where I speculated that global demand was weak. Javier picked up on this to show that demand from China (the main engine) was weak. As you know its hard to follow everything all of the time. My speculation appears to have had some grounding.

This post is 90%+ Javier + those who prepared the charts. I just added a few thoughts.

CW

[John Day]

Thank You Euan and Javier.
It is hard to see behind the babmoo curtain.
That being said, the plan to swap those 4 huge coal-fired power plants outside Beijing for even bigger ones running (Russian) natural gas seems like a better investment than ghost cities.

[Professorlocknload]

“The $10,000 question is will China make a cyclical rebound like it has done in the past?”

I have confidence that in a world of fiat currencies, enough can eventually be printed to absorb most every available resource, including excess oil supply. Remember, it is the primary function of Central Banks to print whatever their governments and their publics spend.

This isn’t over until currencies collapse from printing fatigue and resource shortages.

[Author]

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