Oil stocks are pricing in another supply shock.
The integrated oil major has climbed more than 18% in July. Peer Exxon Mobil Corp. (NYSE:XOM) rose 15% over the same window.
Yet beneath the surface of the Middle East-driven rally, another force is quietly pointing in the opposite direction.
That force is China.
The world’s largest crude importer has suddenly slashed oil purchases to levels not seen in nearly a decade, raising a difficult question for investors: once the geopolitical premium fades, will demand be strong enough to keep crude elevated?
