Oil prices have been set in a 65-100 range by China's buffer stock strategy: China buys at 65 and below, stops buying at 100, creating a band that is great news for energy companies making healthy cash flows without needing capex; refiners at all-time highs with enormous free cash yield and no plans to build new capacity.
causalpending
Speaker
Louis GavelkalEvidence Quote
“if oil gets to 65 and below China just like buys every boat and ships in as much as it can and stores it...at 65, they buy as much as they can. 65 and below and at 100 they stop buying.”
Created: 8/12/2026, 6:20:13 PM
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