Look at the charts on China’s “big three” oil producers. These tickers are sick, sick, sick.
There is talk that China is going to impose a 10% tax on commodity producers, starting with oil but possibly extending to coal, gas, copper and so on.
The fact is that China did introduce a trial resource tax last June. While all of this hinges on higher prices and levels of production that would ordinarily imply good times for producers, it would still put a ceiling on their earnings at a moment when they are already subsidizing the Chinese infrastructure build out to nowhere.
This might be why commodity markets have traded choppily lately — if not flat out in despair.