Wednesday, January 13, 2016

China's demand for crude is showing signs of cracking

News
Oil's decline, often cited as driven by supply glut, is also driven by falling demand. China, the world's largest emerging market economy through 2016 and core economy by 2050, appetite for oil will weaken with the global economy. The price of oil, a function of supply, demand, and most important of all, human behavior should continue to extreme cycle concentrations and until the majority is overwhelmingly bearish (see Monthly Review of Crude Oil).



Headline: China's demand for crude is showing signs of cracking

When looking for the prime culprit behind widespread weakness in commodity prices, fingers often point squarely at China.

On the supply side, especially in select metals, the world's second-largest economy deserves a hefty portion of the blame for the rout.


more

----------------------------------

Market-driven money flow, trend, and intermarket analysis is provided by an Insights key.