Oil supplies from the Middle East and North America continue to make oil bulls people when you are sad, however, demand for China, the center of the future demand, they seem to be able to don't have to feel so pain and sufferings.
The Wall Street journal analysis according to the report, released Wednesday's trade data confirmed that the world's largest oil recently presented a trend of the marginal buyer. According to SiEr Asia company data information co., LTD. (CEIC) data, China is still a large number of imported crude oil, crude oil imports in 2015 year-on-year growth of 8.8%, only slightly lower than 9.3% in 2014.
Consumption, however, most of the crude oil of China's oil refineries are turning to the final product for export. According to the data of CEIC, China in 2015, the year the export of finished products such as diesel may exceed the import, this is the first time since 1994. It steals the needs of countries such as Indonesia and South Korea oil refinery, Indonesia and South Korea refinery crude oil consumption will be reduced.
In the face of local weak demand, local overcapacity situation, China's oil refineries are turning to overseas. The first is who have capacity expansion of China's major state-owned oil companies. These companies to slow down the speed of expansion, but now, the Chinese government began allowing smaller private 'tea' independent import crude oil refinery. The international energy agency (InternationalEnergyAgency) said the refinery capacity suddenly is as high as 80%, after is only 30%.
IvanSzpakowski citigroup (CitigroupInc., C) analyst pointed out that the refinery was also given the export quota, since at least 2016, that figure is considerable. This may mean that China will export 2016 more refined petroleum products. Now, China is not only because of their reduced demand weakens the oil market, also in a non-chinese oil companies in the market, make their situation worse.
Karl fischer (FGE) is responsible for global energy consulting business in Asia, based in Beijing, vice chairman of the dr.wu kang said that in 2015 China's crude oil import growth has two driving factors behind, one is the demand of the small businesses, in late 2015, the private obtained right to the use of imported crude oil refinery, another factor is strategic reserves and business purchases.
According to Reuters calculations, since mid 2014, crude oil prices fell more than 50%. The first 11 months of 2015, China took advantage of this opportunity to increase its stake in 147 million barrels of oil reserves.
The Chinese government said in November 2014 to last year's oil reserves at least doubled, inventory increase faster than analysts' forecasts.
Industry experts said that this year China's purchases of companies may be expanded, because the new storage equipment to use. 'in 2016 May be more interesting, due to two factors may be more favorable, the control of the government to relax the import of crude oil, also relax the refined oil exports. This step faster than imagine, 'said dr.wu kang.
National oil industry association said on Tuesday that China's apparent oil demand is expected to grow 4.9% this year to 570 million tons, or 11.37 million barrels a day.
Even so, as the economic slowdown, gasoline demand is stable growth last fall, diesel demand and lower the demand for petroleum, November was reduced by 2.5%.
Figures show that China's refined oil products export increase, up to the [4.15%] recorded in December of 4.32 million tons, or 975500 barrels a day, 5.4% from the previous month. In 2015, a record 693300 BPD export, increase by 21.9% in December 1.48 million tons of product oil net exports.