Interesting reading in the Economic times -
China is said to be considering buyingeconomictimes.indiatimes.com/N…/articleshow/4228061.cms# crude oil as part of its strategy to diversify holdings from US Treasuries. This is to hedge against the risk of US Treasury prices dropping and dollar depreciation in the long run. Japanese business daily Nikkei reported that China has been stockpiling oil since 2004 and is planning to stock 100 million barrels by next year. Jonathan Paul, principle economist at Krug and Bordman Commodity Advisory, said, “Crude oil should rise to at least $75 per barrel in 2009. One way is OPEC may raise prices and other one is a huge demand on cards from developing and other countries, those wanting to shy away from the dollar denominated assets.”
Read full article at economictimes.indiatimes.com/N…k/articleshow/4228061.cms
China is said to be considering buyingeconomictimes.indiatimes.com/N…/articleshow/4228061.cms# crude oil as part of its strategy to diversify holdings from US Treasuries. This is to hedge against the risk of US Treasury prices dropping and dollar depreciation in the long run. Japanese business daily Nikkei reported that China has been stockpiling oil since 2004 and is planning to stock 100 million barrels by next year. Jonathan Paul, principle economist at Krug and Bordman Commodity Advisory, said, “Crude oil should rise to at least $75 per barrel in 2009. One way is OPEC may raise prices and other one is a huge demand on cards from developing and other countries, those wanting to shy away from the dollar denominated assets.”
Read full article at economictimes.indiatimes.com/N…k/articleshow/4228061.cms