Looming Jet Fuel Shortages?

[I love to travel]

Yes. Talked about this last night. The question is - why?

Mutually assured self destruction? Their economy cannot afford to collapse so they need to prop up the West to protect themselves.

 

[SCM]

Yes. Talked about this last night. The question is - why?

It's also answered in the video, it would impact their trade partners a lot, which trickles back to China's export-oriented economy.

 

[elanshin]

Yes. Talked about this last night. The question is - why?

Nothing concrete, but educated guesses on a few points.

1) it greatly affects many of China's trade partners which would have a flow on effect back to China's economy too if it lets the world take an oil shock.

2) signalling regarding blockading to stop oil imports to China. US can block Malaca Straits which would in theory severely hamper Chinese Oil imports. By doing this they're showing a bit of their hand on how much oil reserves they have that a block isn't going to be as effective if some sort of US - China conflict breaks out.

3) related to 2, but also it projects a lot of soft power in the global oil trade balance. Up until now. Its bren thought of as US, Saudi and Russia being the biggest influence on oil prices. Iran (strait of Hormuz control) has shown its also got a very strong hand and China with this move is also showing that it too can control oil prices - just not in ways that are obvious.

There's more tin foil hat speculation about secret deals during Trumps Beijing visit, but we'll leave that in the tin foil hat section even if there are possibilities.

 

[elanshin]

It can't last forever though.

I think when you see China start taking the stage regarding the conflict is when they're feeling the pressure seriously. They've been sitting back relatively speaking during this war so far.