• IndustryStandard@lemmy.worldOP
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    7 days ago

    Your article is saying that China had large gas and oil reserves which lasted them a while during the war, but is now running out.

    • fizzle@quokk.au
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      7 days ago

      Actually it doesn’t say China’s oil reserve “is running out”.

      More broadly, global reserves including China were as high as they have ever been in February, and yes those reserves have reduced during the crisis. However, in the interceding months other oil producers and refineries have increased production and some have commenced exporting. As in, the network is routing around the strait.

      The podcast I shared references this report from the international energy agency:

      https://www.iea.org/commentaries/how-global-oil-supplies-have-readjusted-to-help-fill-the-huge-gap-left-by-the-strait-of-hormuz-shock

      Yes, prices will be best if the strait is open, but it being “closed” is not as catastrophic as once thought.

      • IndustryStandard@lemmy.worldOP
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        6 days ago

        In practice, the declines in demand have been much lower than the major losses of oil flows come through the Strait. Three other adjustments and responses have been crucial. First, there were large releases from stocks as oil prices incentivised market participants to draw down inventories at record rates, and the IEA’s largest ever release of emergency stocks brought additional barrels to market.

        Can you like, not read?

        • fizzle@quokk.au
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          6 days ago

          Oh man. Did you really just skim through to find the bit that supports what you said so you could paste that here with that snarky little turd?

          Theres an entire report there, written by a respected independent agency, that says the situation is much more complex and nuanced than a binary “is the strait open” test.

          If you’d like to continue labouring under that reductive misconception then have at it i guess.