Surging oil price benefits China?

Surging oil price benefits China?
Oct 23, 2007 04:52
JIMMYB Points: Join Date: Feb 7, 2007 Status: offline	Recently, the oil price in international trade market has increased sharply. Once it reached 89 USD. What makes it rise so quickly? What impact will it bring to us? Talking about its impact, some people say that it is a piece of good news to China. China has a big appetite for oil. In order to meet its domestic need, China has to export oil. In this way, it can help China to decrease its trade surplus. On other hand, the surging oil price will trigger global prices increase and force central banks to raise their interest rates. Therefore, the excess liquidity can be eased. Perhaps, China's bubble will burst. What do you think? Does the surging oil price have the magic power?

Oct 23, 2007 04:52

JIMMYB
Points:
Join Date: Feb 7, 2007
Status: offline

Recently, the oil price in international trade market has increased sharply. Once it reached 89 USD. What makes it rise so quickly? What impact will it bring to us?

Talking about its impact, some people say that it is a piece of good news to China. China has a big appetite for oil. In order to meet its domestic need, China has to export oil. In this way, it can help China to decrease its trade surplus. On other hand, the surging oil price will trigger global prices increase and force central banks to raise their interest rates. Therefore, the excess liquidity can be eased. Perhaps, China's bubble will burst.

What do you think? Does the surging oil price have the magic power?

Oct 23, 2007 21:00	#1
ICEBERG Points: Join Date: Sep 10, 2007 Status: Offline	Everything has two sides. In macro-economy, surging oil price may help China to decrease its trade surplus and ease excess liquidity. But what about those small and medium sized manufacturers? Influenced by the high oil price, their cost will rise and the profits will decrease. This is not good for them. Surging oil price is not the panacea that can cure all the economic problems.

Oct 25, 2007 11:39	#2
APAULT Points: Join Date: Mar 11, 2006 Status: Offline	A rising oil price is good for the world! we have to get away from oil to save the environment, we need the price of oil to be higher.

Oct 25, 2007 20:41	#3
ICEBERG Points: Join Date: Sep 10, 2007 Status: Offline	Paul, I wonder if you are an environmentalist. Yes, a rising oil price is good for the environment protection. But what about its impact on world economies?

May 16, 2008 21:02	#4
MUDDIEDKNEES Points: Join Date: Apr 1, 2008 Status: Offline	<<<A rising oil price is good for the world! we have to get away from oil to save the environment, we need the price of oil to be higher.>>> Haha, I agree. High prices can be an effective way to wean us out of our addiction to oil. Hopefully, the alternatives will be much safer (nuclear?), cleaner (coal?), economically viable (wind? solar?), or sensible (biofuels?).

Oct 24, 2008 04:51	#5
CARLOS Points: Join Date: Sep 10, 2007 Status: Offline	Yeah, buy viagra, it helps when oil prices increase again. ? Carlos

Oct 24, 2008 22:33	#6
JIMMYB Points: Join Date: Feb 7, 2007 Status: Offline	Yeah, buy viagra, it helps when oil prices increase again? Interesting, Carlos. Wouldn't they suffer the heart attack?

Oct 25, 2008 14:25	#7
CARLOS Points: Join Date: Sep 10, 2007 Status: Offline	Heh, only commenting someone´s viagra-online-answer. Mods did quick job removing it. Carlos

Oct 25, 2008 17:13

MARRIE
Points:
Join Date: Jan 7, 2008
Status: Offline

What are you guys talking about? Long positions of oil puts contracts is soring by 145% overnight (50 USD strike, Expire Dec),which means speculators will be beating down oil price below 50 USD by this Dec. This is American unique power in global financial market for curbing economic crisis which was originated from its own fault in specualtive market. This is self-correction and is like a game that seems beyond human beings' control. God knows!

Post a Reply to: Surging oil price benefits China?