Re: Oil-Is China Painting The Tape?

My friend from Capital One made some interesting points today in her oil missive to clients. I will tease out a couple salient points.

She believes that current “fair value” for Brent is $74 (vs. close of $66.56 today) and that the current prices implies a demand hit of 4 mmbpd from July.

Interestingly, high-frequency data for the 1st 2 weeks of August indicate global demand holding STABLE at 98.6 mmbpd MoM — even “adjusting for losses for China and RoA.”