Skip to content
Subscriber Only

HSBC's King Says China Holds the Key to an Oil Rebound

  • Oil-market moves are `not just a supply-side story,' King says
  • Chinese economy has been key to price shifts in past 2 decades

The jury’s still out on whether last year’s oil slump was a deliberate Saudi move, aimed at killing U.S. shale production. Whatever the case, engineering a rebound won’t be as simple, says HSBC Holding Plc’s Senior Economic Adviser Stephen King.

Oil prices have slumped 40 percent since OPEC embarked on a strategy last November to keep pumping and drive out higher-cost competitors. But cutting production is unlikely to trigger a sustainable recovery because China’s economic growth is slowing, King said in an interview in Dubai on Wednesday.