<DrumBeat: October 31, 2007 The Oil Drum A Few Charts of the US Crude Oil Supply and Stocks Situation>

32 comments on This Week in Petroleum 10-31-07

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jkissing on October 31, 2007 - 12:53pm Permalink | Subthread | Parent | Comments top

We are getting shipments from china that their citizens cannot buy on account of prices too low... producers are shipping every barrel they can out of the country because prices are controlled, causing diesel and other rationing. Harmful to the economy, eventually prices will rise and internal demand along with it, at which point we will receive reduced product shipments.

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memmel on October 31, 2007 - 1:19pm Permalink | Subthread | Parent | Comments top

I was aware of what seem to be serious problems in china that will eventually force them to expand imports and lower exports. Does anyone have any numbers on how much gasoline china exports ? It does not have to be to the US since the export market is fairly fungible.

The critical factor for the US is in my opinion when gasoline exports start to falter not when the US runs low on crude imports. I pretty much ignore US crude inventories I don't think they will matter for a long time. We will be able to import as much crude as we can refine well after gasoline imports drop substantially or at the minimum stop growing.

In the interim US crude oil imports play the role of setting the floor price for crude. Something has to break on the gasoline export/import side of the equation soon for the US as your China example indicates. They have to either start decreasing or increase substantially in cost soon.

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32 comments on This Week in Petroleum 10-31-07

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