Oil Near $100: China’s Demand Story Doesn’t Add Up | Art Berman

China's recent reduction in oil imports by four million barrels per day signals a significant domestic economic shift rather than just strategic inventory management. While official narratives emphasize the use of strategic petroleum reserves, refinery data reveals a more concerning trend: Chinese refineries have cut production by approximately three million barrels per day compared to pre-war levels. This decline in refined products like gasoline, diesel, and jet fuel suggests that actual consumer demand has dropped by roughly two million barrels per day. Art Berman, an energy expert with nearly 50 years of experience, argues that this contraction likely stems from a combination of a weakening economy and forced rationing. This perspective challenges the "Chinese miracle" narrative, noting that such a massive, sudden drop in consumption is historically unprecedented and aligns more closely with broader economic cooling observed across Asia.