Is it worth asking?
So the Chinese are hoarding oil, potential playing a significant part in recent high oil prices, but has anyone asked why?
Via Considerettes, this piece in the TimesOnline. The Times put it this way:
"EVIDENCE is mounting that China is buying more oil than it consumes, raising fears that oil hoarding may be supporting the current high price of crude.And while the story shares the optimistic view:The signs of aggressive Chinese stockpiling emerge from research by Merrill Lynch, the investment bank, which suggests that China is importing crude and refined products at twice the rate of growth in actual demand."
"It appears to be a hoarding phenomenon and we think it has to run its course, and when it does pass, prices should gravitate much lower, somewhere down towards $30 per barrel."No where in it does the reporter ask the question why?
While I'm not saying it is so, I certainly hope the CIA, and Defense establishment are paying attention, as a stockpile of this size, could easily be seen as a precursor to future military activities. It would take a great deal of fuel to support North Korea, or an invasion of Taiwan, should the Chinese be so foolish. Of course, that would be in a non-nuclear confrontation.
Just wondering?
Or perhaps, it could be that the Chinese would prefer high oil prices, seeing that as a means to slow the U.S. economy, and by extension weaken the President's chances of re-relection. But I'm not into conspiracies so I'll wait on a better reason.
