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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: TheSlowLane who wrote (12419)	4/22/2004 8:16:21 AM
From: russwinter	Read Replies (1) \| Respond to of 110194

Well, here comes some more cold (I mean hot), hard fundamentals to get us properly refocused. Overlay this on it too: Message 19991540 Message 19994807 China's Oil Demand To Surge On Farming, Pwr Gen, Holiday DOW JONES NEWSWIRES April 22, 2004 12:14 a.m. SINGAPORE -- Oil demand in China will surge in May, with the onset of increased farming activities and travel and on higher requirement for oil from the power generation sector, Chinese industry officials said Thursday. Demand for gasoline, diesel, fuel oil and jet fuel is expected to grow by 8% in May from April, forcing Chinese refineries to raise runs and trading houses to increase imports of oil products, they said. Refinery runs are likely to hit a record 23 million to 23.5 million metric tons in May, compared with an expected 22.8 million tons in April. The refineries have been asked by their parent companies to increase diesel and jet fuel throughput in particular. The seven-day May Day holiday starting May 1 will trigger a rise in diesel, gasoline and jet fuel consumption because Chinese like to travel during the period. The start of the planting season will also trigger a rise in diesel consumption, as most farm machinery is powered by diesel. As the summer sets in, oil-based power plants will increase operations to meet demand for air conditioning. Fuel oil and diesel demand will pick up and is likely to peak in August, they said, with giving details. The anticipated huge demand for oil products has prompted Chinese trading houses to increase imports and reduce exports. For the first time in seven years, China has started importing diesel in April for public transportation and farming use. China banned diesel imports in 1998 but resumed imports in 2001 under an agreement with the World Trade Organization. All imported diesel before April was for use at power plants. China refused to import diesel in the past in order to protect the interest of Chinese refineries. China Aviation Oil Corp. (Singapore), China's sole jet fuel importer, is seeking jet fuel supplies in the spot market to satisfy the anticipated May demand. China's second quarter jet fuel import volume will likely reach 630,000 metric tons. Diesel imports in May will likely reach 250,000 tons, up about 25% from estimated imports in April. In the meantime, China will also reduce gasoline exports. PetroChina Co. (PTR), one China's major gasoline exporters, plans to cut gasoline exports in May to about 200,000 tons from 240,000 tons in April.