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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (15093)	11/8/2004 12:54:49 AM
From: RealMuLan	Read Replies (1) \| Respond to of 116555

China's Oil Demand Growth May Slow to 6.7% in 2005, Agency Says Nov. 6 (Bloomberg) -- China's government expects oil consumption growth to slow to 6.7 percent next year from 20 percent in 2004 as government measures to crimp economic expansion take effect. The nation's oil consumption may rise to 320 million metric tons next year from an estimated 300 million tons this year and 250 million tons in 2003, according to a report by the State Information Center. Crude oil imports may rise to 150 million tons next year, from 130 million tons this year and 91.1 million tons in 2003. China led growth in global oil demand in the past two years, contributing to the 61 percent gain in the benchmark oil price in New York over the past 12 months. China has imposed lending and investment restrictions as it tries to slow growth to 7 percent from a seven-year high of 9.3 percent last year. ``With high oil prices we would need to practice energy- saving measures, to lower consumption and to expand exploration of oil and gas assets overseas,'' Zhu Zhixin, deputy director of the National Development and Reform Commission, said in an interview in Beijing. ``As the economy grows, problems will arise and we need to resolve these problems.'' The central bank on Oct. 28 raised its benchmark interest rate for the first time in nine years and scrapped a ceiling on lending rates for most banks. Controls ``The aims of the controls is to keep the economy growing steadily,'' Zhu said. China's gross domestic product growth may slow to 8.5 percent next year, from an estimated 9.3 percent this year, the State Information Center, which is run by the National Development and Reform Commission, said in its 2005 China Industry Development Report released in Beijing. Officials from the National Development and Reform Commission, People's Bank of China and the State Administration of Foreign Exchange are meeting in China's capital to discuss industrial development in 2005. ``China's government must continue with macroeconomic controls that are beginning to show initial positive effects,'' Lou Jiwei, vice minister for finance, said at the meeting. ``In industries such as coal, steel and oil, prices have increased very rapidly.'' China's expanding economy is boosting disposable income and car ownership, increasing demand for gasoline and diesel. Auto production may rise 13 percent to 5 million vehicles this year, according to the Ministry of Commerce. In the first nine months of this year, China's crude oil stockpiles increased by 2.7 million tons to 12.5 million tons, the State Information Center's report said. Refined oil product inventories rose by 800,000 tons to 7.4 million tons. Coal production this year may total 1.9 billion tons, the center said, without giving last year's figure. Next year, coal demand growth is expected to slow, it said, without giving details. To contact the reporter on this story: Wing-Gar Cheng in Beijing at wgcheng@bloomberg.net. To contact the editor responsible for this story: Reinie Booysen at rbooysen@bloomberg.net. Last Updated: November 6, 2004 00:48 EST bloomberg.com