The most recent Customs figures indicate that China's monthly
oil imports hit a record high in September with a daily average of
448,700 tons.?
A total of 13.46 million tons of crude oil was imported last
month, up 24 percent on 2005, breaking the previous record set in
January of this year by 2.4 percent.
"Price drops in the global market have undoubtedly caused
imports to rise," said Yang Fuqiang, vice president and chief
representative of the Energy Foundation of the US.
Yang predicted the price would drop from the July peak of US$77
per barrel to US$45 or lower before the end of the year. The price
cuts were mainly triggered by the production schedule of the
Organization of Petroleum Exporting Countries, the latest
developments in the Iran nuclear issue and the fading US summer
consumption peak.?
Another factor contributing to the record imports is China's
huge domestic demand. The latest monthly report from the
International Energy Agency projected an annual growth of 6.4
percent for China's oil imports this year. This is twice as much as
the 2005 level.
Since China's first strategic oil reserve was put into operation
in Zhenhai, east China's Zhejiang Province, market speculation of a
surge in oil imports has been rife.
But Yang said that strategic reserves wouldn't have a marked
effect on China's oil imports. The biggest influence would come, as
ever, from heavyweight purchasers such as Sinopec and PetroChina,
he observed.?
The Chinese government has become increasingly concerned with
the surging domestic oil demand and is seeking to restrain
consumption by developing alternative energy sources such as
bio-diesel and ethanol fuel.
Earlier this year export tax rebates for energy-consuming
commodities were removed. Experts say this may also assist in
curbing the demand for crude and refinery oil products.
(China Daily October 18, 2006)