This is what we've been looking for.... earlier than anticipated; I don't know the "degree" of this yet in terms of a percent increase... still looking into it.
- U.S. crude futures tumbled sharply after news that China will raise gasoline and diesel prices.
- China will boost retail gasoline and diesel prices by 1,000 yuan ($145.5) per tonne from Friday, the first increase in eight months, industry sources told Reuters.
EDIT: Readers emailing me this is about a 20% increase - so this puts China at around $3.00ish on gas so roughly 30% below America and "a lot more" below various European countries.
This makes us incrementally bearish on "energy" complex for the medium term. Once this energy trend reverses, I do believe the correction could be quite nasty. The higher we go the more painful the reversion will be... (but energy is going up in the "long" term) - just believe at this time it's ahead of itself. Still believe China will be buying crude on open market to store up for Olympics but Chinese consumers finally should begin to see some demand destruction. Enjoy your new cars fellas!?
Long Ultrashort Oil & Gas (DUG) in fund and personal account
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