Crude Oil Inventories May Be Confirming China's Slowdown

Crude Oil Inventories May Be Confirming China’s Slowdown

The Department of Energy’s most recent energy inventory report is showing a continued rise in crude oil inventories:

Source: Bespoke Investment Group

 

The report confirms my viewpoint that we are starting to see the early signs of a larger global slowdown. As the US is still a consumer based economy (and most parts of Europe could be classified this way as well), China has been the main benefactor of consumer spending. While China has not been too forthright about its data, oil inventories and electrical outputs are confirming the slowdown in trend.:

 

The Dallas Fed released a nice overview last month which went mostly unnoticed in the mainstream financial media:

China’s Slowdown May Be Worse Than Official Data Suggest (PDF)

 

UBS also published their take on the data:

Asia is the Miracle Over – George Magnus UBS

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