Chinese oil purchases, causing hikes in the oil barrel

Oil inventories and chinese oil imports (2000-2009, source: BCA)

The rate of road traffic in the United States, measured by miles by all vehicles, has declined by 4%. U.S. Oil crude inventories  are at maximum levels, with more than 360 billion barrels.

These two facts should be pressing strongly for a lower price of Brent crude, but especially the West Texas, but instead, the oil price has risen from $35 to $70 a barrel.

What’s hapenning?

You will see in the chart, a sharp increase in oil imports from China, coincided with the recent upward movement of the barrel. In Fact, China is the second World largest oil consumer.

China is again decisive in formation of global prices commodities.