Energy Week
Energy Week
225 - Will China's demand lift oil prices? | No, the petrodollar is not going away

225 - Will China's demand lift oil prices? | No, the petrodollar is not going away

China’s mixed economic data fuels concerns about recovery

- Is this something that China can deal with domestically? Or is it the fault of the global economy which isn't ordering as much stuff from China?

- China's consumer demand is doing ok, but the industrial side of China is patchy.

- Is this just pent up consumer demand and the consumer economy will drop off to match the poor industrial recovery?

- "The manufacturing PMI index fell to 49.2 from 51.9 in March — the first time since December it was below the 50 mark, which signals a contraction. Sub-indexes for new orders, new export orders and manufacturing employment were all below 50." 

- Will the consumer numbers decline once the post-Covid bump is over? If so...oil prices are heading lower.

GasBuddy: Decline in retail gasoline prices gaining momentum

- gasoline prices are going down and will go down even more.

- result of oil prices declining and wholesale gasoline prices declining and retailers are passing on the savings to consumers.

- diesel prices also declining. Is this due to slowing economy, or is it just coming back down after being so high due to Ukraine/Russia issues? Seems like the issue is the economy.

First shipment of Russian oil to Pakistan brokered by China scheduled for May

- "The USA may also have given tacit support to this deal as crisis-hit Pakistan remains a key arms supplier to Kiev, ET has further learnt."

- Sanctions, etc. give US a way to control who gets what oil based on foreign policy goals.

How trading oil in another currency besides the dollar might play out

- Saudi Arabia's currency is pegged to the dollar and they can't de-peg it because there would be huge inflation. Can't sell too much oil in currency in non-dollars because yuan, etc. can be devalued.

- "Any diminution of the dollar’s global role in favour of the yuan or another currency will be gradual, and will lead, not follow, the oil market."

- Saudi Arabia may be willing to accept yuan for oil, but they will likely insist on a set yuan to dollar rate.

Biden administration could delay electric vehicles biofuel program decision

- If EV manufactures use renewable "fuels" (energy?) they might get awarded RINs they can sell to gasoline refineries that can't use enough Ethanol?

Energy Week
Energy Week
Ellen Wald and Ryan Ray discuss the week's events in energy, and what it all means to you.