MBCC TH 11th August'23 - "OPEC is but a small fish in the grand ocean called financial markets...china is slowly imploding!"

So Brent Oil prices rallied from $70/bbl. to $85/bbl….nice one OPEC, oops Saudi sorry!

This talk of their reducing output comes at a time when domestic power burn is HIGH, so a lot of the cut is going/staying internally…but what happens in September?

The same time when China is slowly imploding, their loan and bank data is lowest ever + property companies are trading cents on the dollar/bonds close to defaulting.

But wait….the whole sell side world is betting/hoping for Chinese recovery…what is the trade and what is mis-priced?

Our cross asset models have been suggesting these dislocations for weeks…its slowly happening now..!