China Just Took a Giant Step in Its Takeover of Global Oil Markets

The energy news headlines these days are all about the failure of the Doha summit and the upcoming June OPEC meeting in the face of a historic, intractable global supply glut.

But there’s a takeover underway that’s flying totally beneath the radar…

In fact, the early stages are already complete – it started right in the United States’ geopolitical “backyard,” in the OPEC member-state of Ecuador.

The power player moving in is of course none other than China. But it’s certainly not going to limit itself to Ecuador.

We’ve Been Preparing for This Outcome for a While Now

But in 2013, Ecuador, the smallest of the OPEC producers, learned the hard way that this objective had changed. After running out of money, both Ecuador and its national oil company, EP Petroecuador, had to rely on loans from China to stay afloat.

In return, Beijing gained control over the revenue flow from Ecuadorian oil exports. The oil was allowed to flow anywhere, as long as the proceeds went back to China (as loan repayments).

But now, several of my sources are telling me that China is about to take (or perhaps unleash) the next step in its plan to control the world’s oil markets…

And this time, it’s not in the U.S.’s sleepy backyard, but in a major geopolitical “pain point”…

Iran and Iraq Have a Free Pass from OPEC… but China Will Swoop In

Before we get to China’s endgame here, I’ll show you where it’s going to play out and why.

Full article: China Just Took a Giant Step in Its Takeover of Global Oil Markets (Money Morning)

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