Baku. 21 September. REPORT.AZ/ Slowdown of Chinese economy and the devaluation of the RMB have led to the fall of oil prices to the lowest in past 6 years level.
Report informs Brent oil on August 24 sold for 42.23 USD / barrel in December 2008, it worth 36.2 USD / barrel.China by increasing its oil reserves could keep the current prices in the range of40-50 USD / barrel.According to Bloomberg, China since the beginning of the year purchased 500 thousand barrels of oil more than needed.In the center of world energy policy at Columbia University say that over the past seven months, China replenishes its strategic reserves, thereby supporting demand in a crowded marketplace.
Head of research at Goldman Sachs commodity market Jeff Kerry noted that China is now acting as a savior, that saving oil prices to fall to 20 USD / barrel.
However, this situation can last at the most until the end of 2016.
According to the International Energy Agency (İEA), US strategic reserves of fuel for many years kept stable at around 700 mln barrels.Asian countries currently have accumulated about 200 mln barrels of crude in reserves, which until 2020 will increase to 500 mln barrels.Now China replenished seven warehouses totaling about 151 mln barrels.Head of strategy in the commodity markets of the French bank BNP Paribas Harry Chilingurian said China compensates for the decline in demand, filling the storage of crude oil.According to forecasts, the growth in demand from China in last quarter reduced to 2.3% compared with 5.6% in the second quarter, reflecting a decline in car sales, reduction of manufacturing activity and weak volume of electricity production.
The country buys on the fall in prices and, consequently, does not allow to fall even lower: in fact, the lower limit for the Brent crude oil held at 30 USD / barrel.
British Barclays analysts believe that such a policy by China can curb the decline in prices only in the short term..
In recent days, US taking steps towards making a decision on lifting the ban on exports.If the bill is approved, it will lead to open additional 300 thousand jobs in United States.Supporters of the bill in the United States at the same time wish the hegemony of the country in oil market.Director General of the American Petroleum Institute, Jack Gerard said that the United States should not miss the opportunity to press Saudi Arabia and to act as a stabilizing producer.He noted that at present the United States is the leader with an output up to 10 mln barrels a day, and if the country will have access to world markets, it will play a big role in the formation of oil prices.