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Strategies & Market Trends : China Warehouse- More Than Crockery -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (1497)	11/18/2003 6:37:37 PM
From: RealMuLan	Read Replies (1) \| Respond to of 6370

China propels accelerating world oil demand Thu 13 November, 2003 11:29 By Richard Mably LONDON (Reuters) - China is driving faster-than-expected global oil demand growth this year, helping underpin high world crude prices, the International Energy Agency has said. In its monthly Oil Market Report, the IEA revised up its forecast for global demand growth in 2003 by 170,000 barrels a day to 1.28 million bpd, a rise of 1.7 percent from 2002. "The Japanese and European economies are expanding faster than originally expected and Chinese GDP growth keeps roaring along at a blistering pace," said the report. The Paris-based agency, adviser on energy to 26 industrialised nations, also edged higher raised its projection for demand growth in 2004, by 20,000 bpd to 1.08 million bpd, forecasting total demand at 79.63 million. China accounts for 90,000 bpd of the IEA's upward adjustment for 2003 with a projected increment of 440,000 bpd for total Chinese demand of 5.4 million bpd. As a big net importer of crude and petroleum products, the China factor is an increasing influence on world oil prices, now bubbling at over $31 for benchmark U.S. light crude. Led by China, Asian importers are hoovering up increased volumes of crude from West Africa producers, leaving less available for European and U.S. refiners. "The breakneck pace of Chinese economic expansion is rapidly changing the oil demand map," said the agency, forecasting China would overtake Japan as Asia's biggest oil consumer in the second half of next year. "At this juncture China is the engine of global oil demand growth with significant room for further expansion in the industrial and transportation sectors." The IEA said China's net imports hit a record 2.79 million barrels a day in September, up 680,000 bpd on the month. Net imports for the year to end-September averaged 1.99 million bpd, a rise of 23 percent from the average for 2002. It said it saw another 300,000 bpd of Chinese demand growth next year but that its projection had "considerable upside potential." "Should economic growth trends continue, we would expect to see further upward revisions to Chinese oil demand in the future," the report said. reuters.co.uk