06.19.08
China Makes Another Good Move for the Environment and International Oil Market
Last month I brought you analysis of China’s Oil Manipulation, arguing that China’s price controls for energy is one of the reasons for the elevated worldwide price. My fellow contributors Mul and Nator challenged me on this point, but a story out today that China will lift some fuel subsidies has led to a modest sell off of oil today. This shows at least oil traders agree with my earlier viewpoint.
From the China domestic standpoint, it will be interesting to see how this ripples through the marketplace. China is already under inflationary pressures, and if the economy at large is exposed to higher energy prices, this will exacerbate those pressures.
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