| China saved the oil market |
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| Illustration: Sarah Grillo/Axios |
| China apparently kept the oil market from imploding in the wake of the Iran war, Axios’ Emily Peck reports. The world’s second-largest economy sharply cut the amount of oil it imports, taking the pressure off worldwide demand for the commodity and keeping a lid on prices. The big picture: Even as the conflict enters its fourth month, the price of a barrel of oil is still trading below $100 — defying predictions of $200 back in March when the war began.The U.S. national average for a gallon of gas is $4.11 — down 10%+ from its late-May peak. China reduced oil consumption using three key levers: Ramped up usage of electric vehicles and electric-powered rails. Used coal instead of oil to produce certain chemicals. Stopped aggressively stockpiling oil — as it did in the year before the war. Reality check: Energy prices are still way up since February, and have driven up global inflation.Go deeper. |
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The big picture: Even as the conflict enters its fourth month, the price of a barrel of oil is