The Change Mariner

China Now Second In Oil Consumption

Financial Times:

China's fast-growing economy has overtaken Japan to become the world's second largest consumer of crude oil after the US, according to the International Energy Agency (IEA) and the Chinese government.

Latest IEA estimates say China consumed 5.46m barrels a day last year, compared with Japan's 5.43m b/d. In the last quarter of 2003, the IEA says, China was the "main driver of global oil demand growth".

The US remains by far the biggest oil user, consuming more than 20m b/d. The growth in Chinese demand is expected to continue this year, at a time when Opec has little room to boost oil output and US commercial oil inventories are at their lowest levels since 1975, creating tight conditions in the global market.
Benchmark US crude futures hit $35.95 a barrel yesterday, their highest level since US-led forces invaded Iraq last March.

The latest figures underline China's thirst for natural resources to fuel its industrial revolution. Yesterday, China reported economic growth of 9.9 per cent for the fourth quarter of 2003, taking full year growth to 9.1 per cent.
They also confirm that the economy - to the dismay of the ruling Communist party - is becoming ever more dependent on energy imports, mainly from the Middle East.