A potential rise in oil prices would not be entirely negative for China as it could counteract existing deflationary pressures.

“you know, we've had pretty deflationary pressures in the economy. So, we could see energy prices push up the CPI, you know, closer to 1.5%, which I don't think would worry the PBOC too much, frankly. It might be good to put some more inflationary pressure in the economy.”

Policy measures like the Jones Act waiver are insufficient to reduce gas prices significantly because the primary issue is the disruption of oil supplies from the Middle East.

“by itself in isolation, it might not make that much of a difference in terms of pump prices. It allows the Gulf Coast to supply the East Coast a little bit more easily and at slightly lower cost to the to the mid-stream companies, but it's not really going to put a dent in $4 gallon gasoline”