Comments on: China to Increase Fuel Prices; Oil Falls http://www.nakedcapitalism.com/2008/06/china-to-increase-fuel-prices-oil-falls.html Mon, 23 Nov 2009 02:08:55 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: juan http://www.nakedcapitalism.com/2008/06/china-to-increase-fuel-prices-oil-falls.html#comment-9796 juan Fri, 20 Jun 2008 03:44:00 +0000 http://www.nakedcapitalism.com/2008/06/china-to-increase-fuel-prices-oil-falls/#comment-9796 MXQ, could 'well supplied' mean that world production has increased moreless two million barrels/day over the last year while consumption has begun slowing? Memories of overproduction linger. MXQ, could ‘well supplied’ mean that world production has increased moreless two million barrels/day over the last year while consumption has begun slowing? Memories of overproduction linger.

]]> By: mxq http://www.nakedcapitalism.com/2008/06/china-to-increase-fuel-prices-oil-falls.html#comment-9790 mxq Thu, 19 Jun 2008 21:56:00 +0000 http://www.nakedcapitalism.com/2008/06/china-to-increase-fuel-prices-oil-falls/#comment-9790 I'm as suprised as anybody about this...esp. after reading any number of posts from Brad Setser, that illuminate the trillions in reserves China has at its disposal. <br/><br/>That makes me wonder if China is doing this more so to gain political good-will, rather than to relieve financial pressure?<br/><br/>And switching gears a tad (looking at the supply side)...I'm about fed up with OPEC members quoting that "<a HREF="http://www.chron.com/disp/story.mpl/headline/biz/5845808.html" REL="nofollow">the oil markets are well-supplied</a> (no pun inteded!)" and then giving zero details. Yes we know there are floating ships off the coast of Iran, but could you possibly elaborate on "well-supplied?" Maybe, a three page powerpoint presentation that backs this up - dummied down to a few charts and some graphs for us plebians? <br/><br/>Maybe they just think its blatantly obvious? <br/><br/>Obviously, the oil markets don't think so. I’m as suprised as anybody about this…esp. after reading any number of posts from Brad Setser, that illuminate the trillions in reserves China has at its disposal.

That makes me wonder if China is doing this more so to gain political good-will, rather than to relieve financial pressure?

And switching gears a tad (looking at the supply side)…I’m about fed up with OPEC members quoting that “the oil markets are well-supplied (no pun inteded!)” and then giving zero details. Yes we know there are floating ships off the coast of Iran, but could you possibly elaborate on “well-supplied?” Maybe, a three page powerpoint presentation that backs this up – dummied down to a few charts and some graphs for us plebians?

Maybe they just think its blatantly obvious?

Obviously, the oil markets don’t think so.

]]> By: Anonymous http://www.nakedcapitalism.com/2008/06/china-to-increase-fuel-prices-oil-falls.html#comment-9785 Anonymous Thu, 19 Jun 2008 17:28:00 +0000 http://www.nakedcapitalism.com/2008/06/china-to-increase-fuel-prices-oil-falls/#comment-9785 I wonder if markets have read the implications of China's new oil price policy properly. As I understand it, the 'subsidy' was in the form of forcing local oil companies to take a hit on profits. So, they naturally would respond by trying to economize on imports. If this is right, then lifting the price limits will increase total consumption in China and lead to higher world oil prices. <br/>We'll see.<br/>don I wonder if markets have read the implications of China’s new oil price policy properly. As I understand it, the ’subsidy’ was in the form of forcing local oil companies to take a hit on profits. So, they naturally would respond by trying to economize on imports. If this is right, then lifting the price limits will increase total consumption in China and lead to higher world oil prices.
We’ll see.
don

]]> By: Anonymous http://www.nakedcapitalism.com/2008/06/china-to-increase-fuel-prices-oil-falls.html#comment-9781 Anonymous Thu, 19 Jun 2008 16:26:00 +0000 http://www.nakedcapitalism.com/2008/06/china-to-increase-fuel-prices-oil-falls/#comment-9781 "WSJ" says it's an ~17-18% increase. I dread to see the CPI numbers for July! And conversely, say crude futures drop 18% as a result and developed market petrol prices follow suit. What will that do to developed market CPI? “WSJ” says it’s an ~17-18% increase. I dread to see the CPI numbers for July! And conversely, say crude futures drop 18% as a result and developed market petrol prices follow suit. What will that do to developed market CPI?

]]> By: Anonymous http://www.nakedcapitalism.com/2008/06/china-to-increase-fuel-prices-oil-falls.html#comment-9780 Anonymous Thu, 19 Jun 2008 16:17:00 +0000 http://www.nakedcapitalism.com/2008/06/china-to-increase-fuel-prices-oil-falls/#comment-9780 More context? How much *does* a ton of gasoline/diesel cost right now? More context? How much *does* a ton of gasoline/diesel cost right now?

]]> By: Anonymous http://www.nakedcapitalism.com/2008/06/china-to-increase-fuel-prices-oil-falls.html#comment-9777 Anonymous Thu, 19 Jun 2008 15:52:00 +0000 http://www.nakedcapitalism.com/2008/06/china-to-increase-fuel-prices-oil-falls/#comment-9777 Like I said in your 6/13 Quelle Surprise! Imports Lowering Inflation... post, I'd rather take the $100 parka and the $2 gas than the $2 parka and $100 gas....<br/><br/>But then I got this friend who says, "I'd rather have the $2 corn and the $100 gas than the $100 corn and $2 gas..." Like I said in your 6/13 Quelle Surprise! Imports Lowering Inflation… post, I’d rather take the $100 parka and the $2 gas than the $2 parka and $100 gas….

But then I got this friend who says, “I’d rather have the $2 corn and the $100 gas than the $100 corn and $2 gas…”

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