China says it will add to reserves and output of energy and other resources.
In the next few years, Russian energy will be capital starved but China will be right there waiting. Last year, China outlined several long-term aspirations and they were mostly things you would expect like semi-conductors and belt & road initiatives but one stood out: energy extraction. It's a small industry in China and there are few domestic reserves but now you can see why they want to develop some expertise, especially with strong Chinese ties to places in Africa that have untapped oil.
In any case, crude has turned around today with brent crude oil now up $1.
Separately, the EIA reports that US October crude output was 12.381 mbpd, up from 12.312 mbpd in September. Output estimates have been continually lowered throughout the year and the US will have a hard time hitting the 12.63 mbpd estimate set in July. For next year, estimates are also being lowered to below 13 mbpd.
