China is currently in talks with Russia to buy its oil to build up their depleted strategic reserves, it’s no surprise that China is keen to buy this cheap oil which most of the world wont touch, it can dictate terms! With the EU looking to ban all Russian oil by the end of the year its simply giving India and China the opportunity to access cheaper oil in today’s tight market, it feels very wrong emotionally but correct economically.
However overnight oil rallied +1.8% paying little interest in the news and focusing more on the weak $US which helped commodity prices in general, just as it usually does.
MM is bullish crude oil short term targeting ~$US120/barrel
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