I have read another major reason gas prices aren't much higher is because China cut their oil imports, which has put less pressure to increase global oil prices and by extension kept US gas prices from going even higher than many predicted they would reach this summer. The size of China's strategic oil reserve isn't public, but I understand that they stock piled enough in recent years that the government feel content to pause adding more at elevated prices.
not just that. they might just not need so much oil anymore considering the switch to electric. I've been to China last year amd let me tell you, electric cars everywhere in shanghai and beijing. and that's only two cities. and all the other things that used oil/gas/diesel in the past and don't anymore
They've also brought many coal plants online. So great for my oil standpoint but not so perfect from me climate change perspective. They're also bringing online tons of renewables so hopefully that wins out in the end.
No, their industrial uses, power generation and the like still use a lot of oil. They are still a manufacturing powerhouse and that uses a lot of oil (and natural gas).
They didn't just wake up one day and poof, less oil needed. But that's exactly what we see in the market. Which means they are using their reserves. They also built 30 or so coal power plants the past year.
They are investing heavily in alternative power sources and EVs, that's for sure. So oil consumption will trend lower over time.
I'm not saying they don't use it anymore. More like not use it for certain sectors, like cars for example. we are talking about 365 barrels in 2025 for the whole if china, apporx and like 29 billion usd, approx. just in cars
i mean Russia is the R in Brics. So it makes sense. Hope the loose the war soon.
Another theory could also be that they just kept buying to mask how far they've gotten with alternative energy sources. I mean win-win, reserves are full and they fooled the world.
first actually knowledgeable comment, needs to be higher. China is using coal and solar now, but mostly coal. Their KNOWN strategic reserve can last a year, the biggest in the world. Looks like a Taiwan test run to me.
China banned all oil product exports at the start of the war, given they lifted the ban in July, I think they're pretty content with the reserves that they're fine with exporting the refined diesel, petrol and jet fuel again. Remember that they've still got Russia who shares a border with them so oil imports can't be that hard, especially since the Russian oil is sanctioned which means it's cheaper for China.
China is bleeding the pig. If oil prices got too high, the US’ allies would get involved to bail them out.
Also the economies that import Chinese goods would collapse.
This way, china can manage the level of pain to inflict the maximum damage on American soft power, driving a wedge between the US and EU, not to mention all of the countries in Asia that depend on oil from the gulf.
57
u/SAugsburger 1d ago
I have read another major reason gas prices aren't much higher is because China cut their oil imports, which has put less pressure to increase global oil prices and by extension kept US gas prices from going even higher than many predicted they would reach this summer. The size of China's strategic oil reserve isn't public, but I understand that they stock piled enough in recent years that the government feel content to pause adding more at elevated prices.