You don’t think China will burn more oil if it gets cheaper for them? Think again. China has manufacturing capacity to spare. If we don’t buy their goods here, they will figure out a way to consume them domestically.
Automakers are flocking to China seeking to tap that domestic market. If oil prices decline in yuan, then they will definitely find ways to either sell more cars, or sell bigger cars that burn more oil.
To postulate flat demand for oil in China is ludicrous even now as prices are rising. If they flatten or fall in yuan, you think that demand will stall? You’re just wrong wrong wrong.
