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发帖数: 38600 | 1 Oil’s Recovery Under Threat as Tankers Run in Circles Off China
http://www.bloomberg.com/news/articles/2016-05-24/oil-s-recover | b********n
发帖数: 38600 | 2 When the price of oil was above $100, many of the less developed oil
exporting OPEC members decided to capitalize on the high price and cash out
by taking loans using the precious liquid as collateral very much the same
way corporate CEOs use their inflated stock (thanks to buybacks they
authorize) to issue loans against said stock. And why not: even if the price
of oil were to drop, they could just pump more until the principal is
repaid. However, few oil exporters anticipated such an acute oil plunge in
such as short time span, which resulted in the value of the collateral
tumbling by 70%, and now find themselves have to repay the original loan by
remitting as much as three times more oil!
According to Reuters, this is precisely what happened in the years preceding
the great 2014-2015 oil bust: "poorer oil-producing countries which took
out loans to be repaid in oil when the price was higher are having to send
three times as much to respect repayment schedules now prices have fallen."
As a result, the finances of countries such as Angola, Venezuela, Nigeria
and Iraq have been crippled, in the process creating further division within
the Organization of the Petroleum Exporting Countries.
But while these already poor and corrupt OPEC nations were the biggest
losers, one country was a huge winner, the country that provided the
billions in virtually risk-free, oil-collateralized loans to any country
that requested them. China. The same China which has once again proven smart
enough to not demand repayment in fiat but in physical commodities, be they
oil, copper or gold. | b********n
发帖数: 38600 | 3 Take Angola for example: Africa's largest oil producer has borrowed as much
as $25 billion from China since 2010, including about $5 billion last
December, which according to Reuters forced its state oil firm to channel
almost its entire oil output toward debt repayments this year.
Or Venezuela: ever since 2007, China, which has become Venezuela's top
financier via an oil-for-loans program, has funneled an amazing $50 billion
into the Chavez first and then Maduro regimes, in exchange for repayment in
crude and fuel, including a $5 billion deal last September. While details
of the loans have not been made public, analysts from Barclays estimate
Caracas owes $7 billion to Beijing this year and needs nearly 800,000 bpd to
meet payments, up from 230,000 bpd when oil traded at $100 per barrel. | b********n
发帖数: 38600 | 4 Ecuador, one of OPEC's smallest member countries, borrowed up to $8 billion
from Chinese and Thai firms, repayable with oil, between 2009 and 2015,
according to the national oil company
Many other countries have borrowed money from China (and others such as
producers Exxon, Shell and Lukoil, as well as traders Vitol and Trafigura)
and promised to repay in oil included Nigeria, Iraq, Venezuela and others.
Fast forward to today when Angola, Nigeria, Iraq, Venezuela and Kurdistan
are due to repay a total of between $30 billion and $50 billion with oil,
Reuters calculates. Repaying $50 billion required only slightly over 1
million barrels per day (bpd) of oil exports when it was trading at $120 per
barrel but with prices of around $40, the same repayment would require
exports of over 3 million bpd. | b********n
发帖数: 38600 | 5 The end result shows that China's loans for oil program is a great hedging
strategy. China's cost for oil is up to one third what it was three years
ago and, with the Saudis and the U.S. frackers extracting oil and gas as if
there is no tomorrow, the oil barrel price will remain at $45 a barrel or
less in the future. China is making out like a Chinese bandit. | b********n
发帖数: 38600 | 6 The Chinese are light years ahead of the American subnormal IQ* deviant
elite** criminals. The Chinese made around $50 billion in loans around the
world to poor oil exporters and are now being repaired in crude oil at about
3X the volume at the time the loans were made. America's subnormal IQ
deviant elites spent at least $3 trillion in treasure, thousands of lives
and tens of thousands of wounded and we are reaping blowback in terrorism
worldwide. Further evidence that American subnormal IQ deviant elite
criminals are an existential threat to not only the American People but the
rest of the world's peoples as well. Way to go you bunch of fucking morons! | c****g
发帖数: 37081 | |
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