Something Really Interesting Is Happening In China
For 2024, one of the main bearish headwinds for the oil market was the potential SPR release from both the US and China. As we cautioned at the start of the year, the oil price rally this year will be capped due to 1) this year being an election year, 2) Saudi holding spare capacity and is likely to release some at the start of H2 2024, and 3) the potential for SPR releases from both China and the US.
Well... China has been drawing down its crude storage and there's something really interesting about that.
