Tim Daiss, Asia Times: Saudi oil disruption could hit China hardest
Attacks on Saudi oil facilities have put China’s reliance on Gulf state oil imports into sharp relief
Saudi Arabia claims its oil production infrastructure, 60% of which was knocked off-stream in a pre-dawn drone attacks on September 14, will be running at full throttle again by month’s end, an assessment few energy industry analysts view as feasible.
While the Middle East waits to see how the US and Saudi Arabia ultimately respond to the attacks blamed on Iran, the impact on Asia’s oil markets is coming into clearer view, with China looking the most vulnerable to any prolonged disruption to Saudi supplies.
Saudi Arabia is the world’s largest oil exporter, the de facto leader of the Organization of Petroleum Exporting Countries (OPEC) cartel and the world’s third largest crude oil producer after the US and Russia. The Asia-Pacific, home to some of the world’s largest net oil-importing nations, is increasingly dependent on Saudi oil to fuel their fast-growing economies.
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WNU Editor: China's oil consumption runs around 12 million barrels of oil per day of which than 10% (if not more) is dependent on Saudi oil imports. Any hit on this supply would have a profound impact on China's economy. all but guaranteeing zero if any economic growth.
Remember how the Chinese spokeperson (propaganda artist) came out couple weeks back saying they would grow 6%? HAHA like I face-palmed right there and then, knowing how empty the financial districts are, knowing how the factories are leaving.. there is no chance China is growing this or next year, it is contracting for several months now, and they keep covering up for it. But this comes at a price - no one believes their growth any more, means international money, which was already difficult to get over there (Remember: They are ALREADY paying their employees with IOUs - for our international readers, that means they are out of money, an IOU basically means "I promise to give you your money at some point".. this freak show is over.
ReplyDeleteAfter a weak spike in prices following the attack, petrol has reduced to almost pre-attack prices. I think the “Houthis” expected a much larger impact. I wonder what the next provocation will entail.
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