ββ#ForexChief #oil #Brent #market #forexnews #stocks #worldnews #CPCBlendβ
π¨π³π°πΏ Does China buy Kazakh oil: new logistics or market war?β
π’οΈ Chinese traders are actively buying up Kazakh and Norwegian oil, which really unnerves their European competitors. It was oil from Central Asia and the North Sea that was supposed to replace Russian raw materials for continental consumers, the flow of which practically ceased after the December 5 embargo.
β
Beijing has also suspended purchases of oil products from the Russian Federation, but this fact does not at all mean political solidarity with Europe. China simply expects a lower price, and at the same time, it is buying up huge batches of crude oil, for which European refineries were planning. Moreover, Chinese speculators buy Kazakh oil at the market price and do not even require discounts. Contracts have already been concluded for 5 million barrels of predominantly Kazakh oil with shipment for loading in a port on the Black Sea.
β
Now the so-called CPC Blend oil, most of which comes from Kazakhstan, has risen in price to a positive discount of $3 per barrel against Dated Brent, the international marker of physical oil transactions. A month ago, this difference was $8 less.
β
Speculative demand for Β«alternativeΒ» oil has already gone beyond the Black Sea. Norwegian benchmark Johan Sverdrup is now $3-4 per barrel below Dated, while in early December it was $6 below the European benchmark.
β
China's Unipec has bought at least 2 million barrels of Johan Sverdrup crude for January shipment, and that's probably not the whole amount, as February trading hasn't even started yet.
β
Several West African oil traders have also said they expect more purchases from China, although there is no real evidence yet.
β
The return of China after Covid is just beginning, so the competition for raw materials may be too expensive and painful for Europe. Let's see what happens.
β
Profits to yβall!