Filling Up The Chinese Tank
BMI View: China looks set to continue attempts to diversify its oil imports, with recent statements by the country's foreign minister highlighting the country's rising appetite for Latin American crude. However, while we believe that China's actions will pay off in the long-run, the poor business environment in Brazil and Venezuela suggest that rewards from an increased footprint in these countries could be delayed.
Recent statements by China's foreign minister further highlight the country's desire to increase its access to Latin American crude oil. However, while we see this as a way for China to diversify its natural resource base, and mitigate exposure to political instability in a number of its major Middle Eastern and African suppliers, Latin American crude comes with its own risks. While the countries flagged by China as potential partners have among the biggest below-ground potential in the region, they also have considerable above-ground risks.
China Continues To Diversify Supplies
|Heading Higher Even On Slower Economic Growth|
|China - Crude Production, Consumption & Net Crude Imports|