Sumary of China’s Move to Curb Oil Prices Has Market Wary of More to Come:
- 24, the National Food and Strategic Reserves Administration said late Tuesday in Beijing.
- The new strategy is another major “wild card” for the market and is one of the reasons why global crude prices aren’t likely to climb sustainably above $80 a barrel, said Vandana Hari, founder of Singapore-based market analysis firm Vanda Insights.
- “As the triggers for a release are unlikely to be officially disclosed, this is now a new bearish element that could be sprung upon the market at short notice.
- 24 The volume is less than Energy Aspect Ltd.’s estimate of 10 to 15 million barrels and well below the 35 to 70 million that some market participants had been anticipating, Yuntao Liu, an analyst at the industry consultant, said in a note.
- “Nevertheless, this is a still strong signal that China is willing to step up its market intervention in the future should price pressure mount,” Liu said in the note.
- Article content Companies participating in the auction need to comply with national refinery industry policy and have a sufficient import quota, the strategic reserves administration agency said.