Watch video here > https://youtu.be/6bTOkEhrpbM

All eyes on China

China lowers demand before signing massive oil contracts

China tried to butter up the young prince with 32 massive contracts

China agenda was to settle these contracts in the Yuan

Saudi along with many others were concerned with Chinas faltering economy and said no to Chinese Currency

China has no choice but remove all covid restrictions and no better time as he has energy security after having all the agreements in place with Russia and Saudi

Why Oil Prices did not rally to $130 in 2022?

Russian disruptions did not materialize

Covid Lock Downs in China

The Fed increased 325 basis points causing a strong dollar and reducing

50% of the money supply. Without cash you can chase the oil rally.

The hike caused a 30% self-off in oil markets

If we did not have the perfect storm that suppressed oil prices, we would have hit highs of $140+ like the days of 2008 pushing us into a deeper recession. We’re already in a 5-year oil under investment cycle and the blood bath continues. All this does is suppress fundamental oil prices making it more likely to spike vs stabilize.

What’s changed?

Russia, evidence of the sanctions are starting to take hold and Russian oil exports are starting to reduce.

China is seeing increased bookings for holidays, increased subway usage etc..

Europe and India PMI up and rebounding

If we look at 04 to 06 they had rate hikes and eased them in 07 causing a massive oil price rally due to the fed easing rates and China economy being stimulated.

China largest commodity consumer in the world - largest oil importer - 2nd largest economy in the world is now opening the market.

Artificial supply from the SPR coming off the market

Fed plans to buy 200 million back putting a floor under oil prices

China demand should increase around 2 million

Russia supply drop around 1 million bopd

OPEC is supporting higher oil prices as they don’t have to compete with American Oil anymore