China - Experts at Timing the Energy Buy

An exclusive Washington Times article provides insights into China's new energy supply deals. In February, China secured oil supply deals totaling $41 billion with Russia, Brazil and Venezuela. Here are some highlights of these deals:

China will lend $25 billion to Russian oil giant Rosneft and oil pipeline company Transneft. In return, according to Russian news reports, China will receive 300,000 barrels of crude a day for the next 20 years at a rate of about $20 a barrel less than half the current price of $45.

Vice President Xi Jinping signed a deal to lend $10 billion to Brazil's state-owned oil company Petrobras. China will receive up to 160,000 barrels a day, again over a 20-year period.

These deals give China a competitive advantage over smaller countries without the resources to leverage capital for oil. $20 dollars a barrel for 20 years - amazing. These deals have to be rock solid. Any country would need to think twice before welching on a deal backed by the Chinese Army.