China Uses Less Oil

Friday, October 9, 2009

IEA said that the Chinese economy is slowing, according to diverse indicators on manufacturing, power generation, retail sales and trade. The growth in passenger car sales has virtually stalled since last summer, after rising at double digit rates for several years in a row.

China’s industrial production grew at the weakest pace in almost a decade as export growth collapsed. Output rose 5.4 percent in November from a year earlier, the statistics bureau said today. None of 14 economists surveyed by Bloomberg News predicted such a small increase. Production grew 8.2 percent in October.

That is a very bearish signal for crude oil. Is this China slowdown totally factored in prices?

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