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

To: RealMuLan who wrote (1903)	12/11/2003 2:04:34 PM
From: RealMuLan	Read Replies (1) \| Respond to of 6370

China, U.S. lead spike in global oil demand Chinese demand said rising "at breakneck pace" Global supply can still meet needs, analysts say BRUCE STANLEY ASSOCIATED PRESS LONDON—With China's economy expanding rapidly and a recovery simmering in other countries, demand for oil will increase faster than expected this year and in 2004, says the International Energy Agency. Demand has surged this autumn in the United States and several other industrialized nations, while Chinese demand appears to be advancing "at a breakneck pace," the agency said in its monthly oil market report. Even with consumption on the rise, analysts said, oil-producing nations should not have trouble supplying the market with enough fuel to maintain reasonable energy prices for motorists and homeowners. The global appetite for crude in 2003 will have grown by a robust 1.9 per cent, or 1.44 million barrels a day, and in 2004 by 1.5 per cent, or 1.16 million barrels a day. The IEA raised its estimates for daily demand growth in the two years by 160,000 barrels and 90,000 barrels, respectively. Crude supplies grew only half as fast in November as in October, due partly to a levelling off in production from oil fields in the North Sea, and tight oil inventories have contributed to swings in already high crude prices. Although OPEC members agreed to cut their production beginning Nov. 1, they still pumped 1.2 million barrels a day above their output ceiling, the IEA said. Analysts said this cushion of excess production has helped to moderate crude prices ahead of the peak winter demand for heating oil in the northern hemisphere. "There is more than enough supply" when you take into account non-OPEC production, said Ken Miller, an oil and refined products analyst at the Houston-based consultancy Purvin & Gertz. "Our projection is for oil prices to drop, but not substantially," Miller said. Even if the raw material for heating oil and gasoline is cheaper, factors such as weather and refinery operations also affect retail prices.http://www.thestar.com/NASApp/cs/ContentServer?pagename=thestar/Layout/Article_Type1&c=Article&cid=1071097809620&call_pageid=968350072197&col=969048863851