EVIDENCE is mounting that China is buying more oil than it consumes, raising fears that oil hoarding may be supporting the current high price of crude.
Projections of the rate of growth in consumption in the People’s Republic suggest that China’s power generators, road hauliers, petrochemical plants and factories will burn an extra 500,000 barrels a day of crude oil this year. But Merrill Lynch’s analysis of implied demand, based on import data in the first and second quarter of this year, suggests that demand will increase this year by one million barrels a day.
Michael Rothman, Merrill Lynch’s senior energy analyst in New York, reckons that the second figure is not real consumption and does not reflect actual burning of crude in Chinese cars and power plants.
“It appears to be a hoarding phenomenon and we think it has to run its course, and when it does pass, prices should gravitate much lower, somewhere down towards $30 per barrel.”
yeah its those chinesse... all getting togther and hording oil, then stoping it to make Bush look good
thats one billion people in the vast halliburton conspiracy
Tuesday, August 31, 2004
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