- cross-posted to:
- hackernews@lemmy.bestiver.se
- world@lemmy.world
- cross-posted to:
- hackernews@lemmy.bestiver.se
- world@lemmy.world
cross-posted from : https://lemmy.zip/post/69443138
This ability to turn oil demand on and off, ostensibly at low economic cost, allows the world’s biggest oil importer to move prices just as the Organisation of the Petroleum Exporting Countries (OPEC) and its allies have long done through their control of half of global output. And as the cartel is weakened by the recent departure of the United Arab Emirates and strained production capacity of its remaining Gulf members, China’s market power is growing. As one oil-trading boss puts it, “China is the new OPEC.”
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Monopsony is the word for it. They are suggesting that China is becoming such a large buyer of oil relative to other buyers that oil producers are forced to do what China wants. China would be stupid to test that theory, however. Long-term denial of oil to China would absolutely destroy this energy-poor country.
Stop yelling
