Russia Says China More Important To Oil Prices Than Europe

Russian central bank deputy chairman Sergei Shvetsov said at a conference that a slowdown in China’s economy would have a much greater effect on oil prices than even the current sovereign debt crisis in Europe.

Mr. Shvetsov said, “Automobile use and economic growth in China are a much greater factor in influencing energy processes than the processes in Europe.”

He added that the United States becoming a net exporter of natural gas may also affect global prices for crude oil. However, he again pointed out rising Chinese demand for energy would be a greater influence on pricing than the amount of supply now coming onto the market.

Meanwhile, West Texas prices are converging with the global Brent benchmark (NYSEARCA:BNO) as plans to reverse the flow in the key Seaway pipeline would reconnect previously shut-in U.S. crude supply to global markets.

Previously, Brent was decoupling from U.S. pricing after first Japan’s nuclear disaster and then Libya’s civil war fed greater demand and lighter supply for Asian and European consumers, respectively.

Normally the two gauges trade relatively close to one another.

(etfdailynews.com, Edited by Topco)