MBCC Portfolio Update - for paid subscribers only...

China's import of key Commodities, with the exception of Crude Oil (+3.7% MoM, +14% YoY) slowed last month. Now a lot are using this increase in Oil imports as justification for the “reopening”. Yet covid cases are rising and the government insists they are NOT opening up for now. So what is really happening in Oil and in China?

Most who look/trade at Oil, especially the generalists, do not look below the top line Crude. But there is A LOT more to Oil than just Oil, in-fact it is ALL about products namely gasoline/distillate/diesel and all. Oil is just the input that goes to make all the above. We have said Commodities are ALL about timing or playing the “inventory balance” in a short period of time. But eventually, there is always an opportunity. We need to break the cyclical from the secular.

We all know the clean energy transition story, failed energy policies, useless bans, we get it, it is ALL long term and academic, but now there is a REAL TRADING opportunity in the different barrels of the Oil market. That is what WILL/CAN move the Oil price. IEA/EIA all push reports on themes the market has already priced in, only to then adjust them AFTER the fact. These reports are useless for traders, where you can arbitrage on the 20%-30% with new insight into what is going to happen, but just what has.

Sign up to read below as we tell you what the opportunity is here!