In this brief report, PIRA Energy Group reports that China reached a milestone in December of last year, as Chinese net petroleum imports were greater than US net petroleum imports for the first time.
China reaches a milestone
Every year for the last 20 years, Chinese oil demand has increased in both absolute and relative terms, that is, as a percent of world total demand. Since the price spike of 2008 and the following recession, US oil demand has been declining in both absolute and relative terms, for all years except 2010. This, coupled with growing US oil production, has led to a downward trend in US net oil imports, while Chinese net oil imports exceeded US net imports, and this trend will continue to grow for years to come.
Crude runs in Japan appear to have begun their seasonal decline for turnarounds and crude stocks build for the week ending March 16th. Major product yields remain unusually low. Gasoline and gasoil balances showed only modest changes on the week, while kerosene stocks continued drawing.
Adapted from press release by Claira Lloyd.
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