Home › Forums › Refining Community › Refinery News › China Fuel-Price Increase Shift Losses Fishermen Update2 › RE: China Fuel-Price Increase Shift Losses Fishermen Update2
Here is good Bloomberg article on update of China Fuel-Price increase & impacts on farmers/fishermen & families.
Keep in mind that the increase is from a government controlled price under US$0.87/gal and that the Chinese Government will still have to bail out the Government controlled refining industry (Sinopec & Petrochina) for the 5th year in row at $Billon losses. The independent refineries have shut down except niche areas using domestic crude or black market Iraq crude.
I think major crack is developing in the China growth & subsidy machine used to shift jobs/industry & products from Western world to China isn’t going to be able to continue at +$100/Bbl levels IEA/Pickens & rest of the “High Crude Price” forecast folks are trying to project. (Also just wait till all speculators that didnt get caught or bankrupt with price shift start playing the market on the short/downside position.)
So even if US & Western world governments continue sit on their collective butts and let China subsidize this unfair trade advantage (via logistics/fuel cost raw materials and products to market) – the market forces will drive them out. If US consumer demand is buckling under weight of $USD 80-124/Bbl crude selling products at $US3.75/gal. then China export demand stands no chance of continuing support at these sub USD$1.0/gal. prices and the current China high unemployment and inflation values are going to really shut down their economy. And that is in addition to & before they get the backwash from US demand shut down impacting their export shipments.