Article

2006-08-13 China-Japan-Koreas

China's net import of crude oil up 17.6 percent year on year in first half

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Posted by ed 2006-08-13 09:50|| || Front Page|| [1 views since 2007-05-07] Top

#1 17.6% increase in one year is hardly believable. They must have been understating previous year, or are understating re-exports, or something. I know their economy is growing fast, but I don't see they've added enough consumption capacity to explain these numbers. Perhaps they've built and are filling some serious strategic petroleum reserve? To insure against sea blockade until they get their land pipelines to Iran and central Asia complete?

Posted by Glenmore">Glenmore 2006-08-13 12:02|| 2006-08-13 12:02|| Front Page Top

#2 I think you've got it. They have been building up ultimately to 90-day stocks. I don't think they are there yet even with this.

Posted by Cluck Glulet6232 2006-08-13 15:20|| 2006-08-13 15:20|| Front Page Top

#3 About a year ago, China's oil imports fell sharply. Probably becuase they stopped filling reserves when went prices went over $50. They may well have decided to start filling the reserve again.

Posted by phil_b">phil_b 2006-08-13 17:31|| http://autonomousoperation.blogspot.com/]">[http://autonomousoperation.blogspot.com/] 2006-08-13 17:31|| Front Page Top

#4 robably becuase they stopped filling reserves when went prices went over $50. They may well have decided to start filling the reserve again.

Had to build up some more capital from their Walmart sales.

Posted by Uleter Glemble2673 2006-08-13 19:28|| 2006-08-13 19:28|| Front Page Top

#5 Why so much growth? Here's your answer: Chinas automobile sales surged by 26.71 percent in the first half of the year to reach 3.53 million units, according to figures released Friday by the China Association of Automobile Manufacturers. China is moving away from oil as a feedstock for its power plants. Nuclear, hydro and coal are replacing oil. As a result, the primary driver of oil consumption growth is becoming motor vehicles.

It's not just cars. Hundreds of millions of Chinese still ride bicycles to work. They are moving up to motorcycles* and Chinese ripoffs of the Italian Vespa design (I love their looks). That's another part of where the growth in gasoline consumption is coming from. For example, a motorcyclist commuting a few miles to work might spend just over 100 yuan a month. That's affordable even on a salary of 800 yuan ($100) a month, which is why many Chinese are moving up to motor bikes. Most Chinese live with their parents until they get married, and some continue to live with them after they get married, so the low salaries are not an impediment to owning a motor vehicle. Food is typically half the price of the equivalent in the US, and rents can be as low as 100 yuan ($12.50) a month for a one bedroom in the sticks just fifteen miles away from the town center.

* Motorcyclists are moving up to cars.

Posted by Zhang Fei 2006-08-13 22:03|| http://timurileng.blogspot.com]">[http://timurileng.blogspot.com] 2006-08-13 22:03|| Front Page Top

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