To what extent will energy prices be effected by the Chinese government’s move to let the yuan appreciate against the world’s currencies? This move by the Chinese is giving that country more buying power which is helping equities there and abroad and raising the prospects for increased fuel demand implications. It’s key to note that while the peg was floating, which ended two years ago, the energy complex put together its largest bull run in history as a “rising China” looked to increase fuel demand almost exponentially. Given the 50% increase in car sales last year, the double-digit increase in oil demand YoY, and the idea of a China with more buying power down the road, the energy complex may once again be pricing in massive Asian demand growth that may overshadow weaker readings from the world’s mature economies….a painful combination for U.S. consumers. This is a significant market impact as China remains one of the few legitimately bullish factors for energy prices today.