Quite unexpected, second straight crude supply stockpile build in today's EIA report - WTI taking it on the chin throughout the curve. Nice rally in the Gasoline Crack as distillates not hit as hard as CL and I would expect the Gasoline Crack to get a bit stronger short term.
The world does NOT work like that. The US petrodollar is irrelevant. What's important is the size of the debt market. USA debt market is almost light years ahead of the rest of any other nation. Debt is the real currency (debt monetization) You can allocate a Trillion US dollar from Arabia and the market wont even fart. If you try to put that same amount of money into de Chinese system, You likely lose at least 25% due to illiquidity. Ohh, But Chinese can turn their debt market into a powerhouse too. True. But that mean they will have to float they currency and if they do that, they economy will colapse. BTW: Everybody buy oil in their own currency or equivalent. Nothing new.
Petrodollar keeps demand for the US Dollar extremely high... Yes having the worlds Reserve Currency status will always make your dollar attractive, the real demand comes from the majority of countries on earth that have to import Oil, it is the most traded commodity in the world... Flush with US Dollars everywhere, then dumped in credit markets or created by Offshore Banks out of thin air, without sufficient deposits. Petrodollar is the foundation of the Dollar strength then Credit Markets solidifies it... But 100 million bpd... Mucho dinero amigo! https://www.reuters.com/article/us-...n-bpd-when-will-oil-demand-peak-idUSKCN1M01TC As for china, look at it's current Interbank markets, as well as HK Interbank. Scary stuff... You will see multiple banks fail or get taken over through out the year in china, what debt market into powerhouse ? Like a wise man once said about Tesla, that would be a pipe dream sir... Fraud is so rampant there, it's imploding by itself, but Deglobilisation is the nail in the coffin. Too many companies moving out of a china, it was already in the making, started 2016, picked up pace in 17-18, happening at a moderate/fast speed right now... A lot of Foreign Capital Outflow, get your money back while you can is what the market is saying right now, before the bank bail ins come. No more spare US Dollars, running account deficit, no where to hide... They float and hyperinflation hits on imports, I could see it within a few months of being floated being 20-1 or 25-1 CNYUSD. It could be a few years until they float, they will keep swapping for Dollars in markets paying vig refinancing everytime, but they will have to one day, Ponzies always unravel... I think they can in theory avoid to floating rmb as long as they restrict any US dollar being taken out of china except for business purposes, but they already ow 3.5 Trillion in US Issued debt, some speculate 4! Who knows how severe it will be, time will tell!
Have you looked at RB lately? The thing is down like 1800 ticks since Tuesday. We better be getting cheep gas in a month. Well, by cheep, I mean 30-35 cents less per gallon than where we are now. It's still gonna' be relatively pricey. $2.50 per gallon? This should not be a dream for us car drivers, it should be an outrage.
If nobody understands why this is the funniest shit posted on ET in a long time, look up the word "entendre". Hehe! Thanks mickey, I needed that.