China's Economic Recovery Boosts Oil Prices

China's economy is showing signs of recovery, but unlike in the past, this growth may not translate into a surge in oil prices. China's current phase of economic growth is led by household consumption, mainly services, and not aggressive stimulus. Transportation accounts for just 54% of China's oil consumption, and demand drivers are expected to switch this year, with travel rising and property less negative, while infrastructure and manufacturing slow. This is unlikely to cause oil prices to surge, especially as China is buying at a discount from Russia.