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Page added on August 28, 2014

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Chinese oil demand declines

Chinese oil demand declines thumbnail

Month-to-month demand down 6.2 percent.

The decline in how much oil China needs is a reflection of a slowdown in its economy, analysis from Platts said Wednesday.

Apparent oil demand, a reflection of how much oil goes into domestic refineries combined with net oil product imports, decreased 2.1 percent in July year-on-year. From June, apparent oil demand dropped 6.2 percent to 9.61 million barrels per day.

“The weakness in China’s oil demand reflects the ongoing slowdown in its economy,” James Bourne, Platts associate editorial director for Asia news, said in an emailed statement.

That’s in contrast to the Organization of Petroleum Exporting Countries, which said in its latest monthly oil market report Chinese oil demand should increase another 3.8 percent during the fourth quarter of the year.

Asian economies are growing at a faster rate than other major markets. OPEC said in a 97-page annual report published earlier this year that oil demand should increase most notably in China, Thailand and Indonesia.

OPEC said commercial oil inventories in China fell by 4.9 million barrels in June because of an 8 percent decline in imports and 1.4 percent decline in domestic oil production.

UPI


11 Comments on "Chinese oil demand declines"

  1. JuanP on Thu, 28th Aug 2014 7:04 pm 

    The Chinese have been expanding and filling their strategic oil reserves these past few years. I wouldn’t read too much into this report. I have been expecting a decline in Chinese oil imports for months because they were filling up fast their new available storage space. I don’t think this is the beginning of a long term trend, but lower numbers could last up to one year as I understand it.

  2. shortonoil on Thu, 28th Aug 2014 7:09 pm 

    Well, another major world producer peaks, and the analysts incest on putting the cart before the horse again.

    “The decline in how much oil China needs is a reflection of a slowdown in its economy, analysis from Platts said..”

    The economy does not drive oil, oil drives the economy. Petroleum is presently losing its ability to power the economy by about 3% per year. This will continue until the oil age ends. You can bank on myths extrapolated from unproven economic hypothesis, or you can bank on physics. We’ll stick to the physics!

    http://www.thehillsgroup.org/

  3. Davy on Thu, 28th Aug 2014 9:12 pm 

    Short, oil is one way to gauge the Chinese economy since their economic statistics are trash.

  4. Makati1 on Thu, 28th Aug 2014 10:25 pm 

    Hahahaha… Are they any better than the US propaganda “Statistics”? US Inflation that does NOT include food and energy? GDP that is bloated by every means they can think of? The only successful industry left in the USSA is the Military Industrial Complex and war.

  5. Stercus Feri on Fri, 29th Aug 2014 1:03 am 

    There are numerous metrics for measuring China’s economic position. Oil import volumes are one of the harder ones to fudge but it’s not the ONLY metric. The know-it-alls and myopic comments on this site never cease to amaze me. You guys should try read more.

    http://www.ogj.com/articles/2014/08/eia-china-to-increase-natural-gas-consumption-investment.html

    http://www.bbc.com/news/business-28735600

    http://fortune.com/2014/08/08/china-posts-record-trade-surplus-in-june-as-exports-surge/

  6. Davy on Fri, 29th Aug 2014 5:44 am 

    Steve, electricity is probably a better Chinese economic indicator.

  7. Makati1 on Fri, 29th Aug 2014 7:36 am 

    Get back to me in a few years, not just a month’s changes.

  8. steve on Fri, 29th Aug 2014 9:22 am 

    Makati appears to be very nervous over this…why does every report for him have to be a way to slam the U.S? He sounds like a pimple nosed kid half the time…I used to think one country was more righteous than another and that this political party was better than that one but then I grew up….

  9. westexas on Fri, 29th Aug 2014 9:50 am 

    The following article on car sales shows that China’s new car sales are up 15% in 2014, over 2013:

    http://www.gbm.scotiabank.com/English/bns_econ/bns_auto.pdf

    Of course, for global sales the critical question is the percentage of global new vehicle sales in developing countries (with presumably low scrappage rates) versus developed countries (with high scrappage rates).

    Based on a WSJ article, we are apparently looking at something like 85 million new vehicles globally in 2014. Incidentally, a separate article indicated that about 0.5% of new global vehicle sales in 2014 would be electric or plug-in hybrid.

  10. Northwest Resident on Fri, 29th Aug 2014 10:52 am 

    westexas — Those may be cars today, but not too far in the future they will be converted into stationary single-family homes.

  11. Makati1 on Fri, 29th Aug 2014 8:25 pm 

    steve, someone has to do it … lol.

    I’m not nervous over anything. I have lived 70 years. I could die while I type my reply. It is liberating when you accept death as a constant companion and don’t fear it. You are open to the reality that others prefer to not see or acknowledge.

    I know more about the East than most as I live here. it is my Mexico and Canada, so I pay attention to what is happening here. I also see what is happening in the USSA as I get a two week ‘snapshot’ of the changes when I visit annually. What I say/write is what I see at the moment.

    That you disagree does not change my observations or thoughts on the future. I read those who disagree with me, to get their viewpoint of reality. Sometimes it is so far off base that I laugh and move on. Others show proof of their assertions and I reconsider my viewpoint. That process was once called learning. So many in the West are not able to learn. The mind-washing has been too effective. I am a world citizen, if such is possible. All countries are equal. None are “exceptional”.

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