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China is About to Take Control of Global Oil Markets

by Dr. Kent Moors | published April 26th, 2016

Some time ago, while I was advising on a refinery project in Ecuador, I explained here in Oil & Energy Investor how China’s oil policy was evolving.

The country’s objective used to be controlling oil production abroad, with the aim of transporting that oil back home.

But in 2013, Ecuador, the smallest of the OPEC producers, learned the hard way that this objective had changed. After running out of money, both Ecuador and its national oil company had to rely on loans from China to stay afloat.

In return, Beijing gained control over the revenue flow from Ecuadorian oil exports. The oil was allowed to flow anywhere, as long as the proceeds went back to China (as loan repayments).

Now, several of my sources are telling me that China is about to unleash the next step in its plan to control the world’s oil markets.

And this time, the targets can be found in an unsuspecting place. And in an unsuspecting fashion, too…

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Tapping Into Asia’s Energy Leverage

by Dr. Kent Moors | published December 10th, 2013

For years now, energy deliveries to Asia have usually included a “premium.”

It refers to the additional amount of money Asian importers have to pay for the same crude oil over what it cost to deliver the product to places like Europe. That built in differential has traditionally made doing everything on the Asian continent a bit more expensive.

This premium still exists today, but not for much longer. In fact, energy pricing is about to experience some significant changes – especially when it comes to China.

These massive shifts mean we’re going to need to change how we invest in the energy sector.  In this case, the key for investors is two-fold.

Let me explain what I mean