During the middle of the 1990s, one of the key factors affecting the cost of oil (and the cost of gas as well, traditionally getting 70% of this from the oil cost) included China’s economic development rate.
The ‘super cycle’ in commodities during that decade was caused by the enormous gap between the country’s energy needs to fuel its economic expansion and the absence of domestic oil reserves.
According to an in-depth analysis of a new book on the recent worldwide oil market order, this was characterized by continually growing prices for the essential commodities needed in its economic expansion, such as oil.
Its rapid economic expansion permitted it to surpass the United States as the world’s biggest yearly gross crude oil importer as recently as 2017. The extent to which China’s economy is rebounding from the harmful impacts of Covid, which were felt from 2019 to 2022, has been questioned in light of current information releases from that country.