When you think of China, you will think of vast land and large population, is a large country geopolitical sense and so on. About the topic of oil, and is often people talk about. But recently, such as rumors oil freezing or American oil demand such topics more striking.
But we have to talk about China. China's real recovery plays an important role in oil prices. It is predicted that by 2021 China's oil consumption will be about a third of the world. China's demand for other commodities also relates to many developing countries in economic, and these countries need more oil.
China petroleum and chemical co., LTD. (hereinafter referred to as "sinopec") concerns about the latest results.
China is expected in 2021 oil demand 13.6 million barrels a day.
, according to a report released on March 29, due to the decline in oil prices, trade in exploration and production so damaged, but still sinopec smelting operation benefit.
Also confirmed that, when it comes to fuel sale to the general public in 2015, two Chinese domestic oil giant sinopec and petrochina's sales hit a brick wall.
As early as October last year, I will emphasize the sinopec and petrochina two companies of oil, diesel, kerosene in domestic sales fell, and in 2015 reduced sharply. It did happen. Although sales fell 0.1%, but the situation looks very serious.
In absolute terms, sales stagnation would happen.
These are necessarily lag index. Measuring global oil actual demand, although difficult, is very important. Two companies reported fuel metric tons count, but only about 7.5 per ton barrels, but not for each type of fuel. Their sales is about 6.8 million barrels a day last year, or 60% to predict oil consumption in China.
More and more Chinese people begin to buy cars, or larger cars, so gasoline sales rose, but still failed to offset reduced diesel sales. This clutched the challenges facing China, because China from dependence on industrial and fixed investment towards consumption economic transformation, and the total expansion of relatively quickly. But also brought down the oil and other industrial commodities, such as liquefied natural gas, iron ore. Many producers, according to China's state of the investment billions of what they think that as long as the supply, China will consume.
Not only foreign mining firms and oil giant of clues, so is a leading industry of China's oil. Sinopec and petrochina domestic fuel sales decline, further pressure on oil prices.
Scale of the two companies are expanding, global excess oil refining capacity. Refining is by distillation unit, pipe, container consisting of a huge, complicated system. Refining is also a huge sunk costs, you need flexibility as much as possible, or no recession.
Bloomberg industry research analyst Miranda said in a research report, like the global steel market situation, when China's ability to produce fuel more than people's consumption desire, more will be put into the global market.
Will come true sooner or later, the economic transformation of China (in fact, bloomberg thom Mr Link and industry research analyst phil Ding Ganggang) issued by the Chinese government could implement plan. Even if it is a huge challenge, the rise in oil prices is not accustomed to think that China's demand will increase. May still continue to talk about oil supply to freeze.