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When we think about oil & Asia, don't forget:
* Asia as a whole is a net importer of oil - how much u ask? Well, USD599bn in 2018
* EVERYONE is a net importer of oil except Malaysia w/ a 1bn SURPLUS
*China deficit was 258bn in '18
*Higher oil prices=higher import costs for Asia👈🏻
* Asia as a whole is a net importer of oil - how much u ask? Well, USD599bn in 2018
* EVERYONE is a net importer of oil except Malaysia w/ a 1bn SURPLUS
*China deficit was 258bn in '18
*Higher oil prices=higher import costs for Asia👈🏻
Many people think that Southeast Asia is a net exporter of oil & would gain. Only Malaysia gains from this as it has a net oil surplus. Indonesia had a -USD4.1bn deficit in Q2 2019 & despite exporting crude, imports refined oil. So net LOSS
China net imports is half of Asia's👈🏻
China net imports is half of Asia's👈🏻
Vietnam used to have a surplus in oil but now has a deficit as it exports crude & imports refined oil. Its domestic capability rising but still net deficit.
Malaysia is the only winner here. Asia is net oil deficit by USD 599bn. Money flows from East to West (USA) if oil rises.
Malaysia is the only winner here. Asia is net oil deficit by USD 599bn. Money flows from East to West (USA) if oil rises.
China imports mostly essentials as it has vertically integrated its supply chain, which means it can use a lot of domestic inputs for manufacturing production.
But it cannot makeup for lack of arable land & also natural resources. Net soft & hard commodity imports in a big way.
But it cannot makeup for lack of arable land & also natural resources. Net soft & hard commodity imports in a big way.
